Bolivia’s state-run energy company YPFB signed a contract with Brazil’s Petrobras (PETR4.SA) on Tuesday to supply 2.2 million cubic meters of natural gas per day to the Cuiaba thermoelectric plant in Brazil’s Mato Grosso state.
YPFB President Carlos Villegas said in Rio de Janeiro that the volume in the deal was part of the overall agreement between the two countries for Bolivia to supply up to 30 million cubic meters a day to its larger neighbor.
Bolivia has the second-largest natural gas reserves in South America, after Venezuela, and it is the top exporter in the region, supplying the fuel to Brazil and Argentina.
The Andean country shipped 27.2 million cubic meters of natural gas a day to Brazil in 2010, a 22.3 percent increase over the previous year.
Leftist President Evo Morales nationalized Bolivia’s natural gas industry in 2006, increasing taxes on foreign energy companies, incuding Petrobras.a