Petropar starts negotiations for YPFB to supply 800 TM of LPG directly

YPFB statement

This is an automated translation of the original press release issued in Spanish

Santa Cruz, Aug 9, 2022 (AN-YPFB).- A technical team from Petróleos Paraguayos (Petropar) is taking steps in Bolivia so that Yacimientos Petroliferos Fiscales Bolivianos (YPFB) directly provides approximately 800 metric tons per month of Liquefied Gas from Oil (LPG).

“It is always a plus to be able to have a country's state-owned company as a direct client. The demand programmed by Petropar can be comfortably covered with the production that we have destined for the export market”, stated Armin Dorgathen Tapia, president of YPFB.

The president of Petropar, Denis Lichi, and the foreign trade manager of Paraguay, Rose Marie Medina, together with a technical team, met with authorities from the Bolivian state oil company in order to finalize the purchase of the product directly.

The technical teams work on alternatives that make the regulations in force in the neighboring country more flexible and the commercial relationship for the period between 2016 and 2019 can be resumed at a favorable price for the country. Two alternatives are considered: a short-term spot purchase and a international public tender for the purchase of the product with final destination the Paraguayan market.

The commercial relationship between both state oil companies dates back to 2013. Between 2016 and part of 2019, the relationship was carried out directly without the participation of intermediary companies. In 2019, the regulations issued in Paraguay made it impossible for YPFB to participate in international tenders for the supply of LPG.

The result of the negotiations could be the restart of a long-term commercial relationship between YPFB and Petropar. A commercial strategy will allow the Bolivian state oil company to provide the product directly without the participation of any intermediary.

The Bolivian state oil company covers approximately 70% of the LPG demand in the Paraguayan market.

In addition, the possibility of generating synergies so that Petropar can supply fuel to Bolivia was discussed. It would also provide the necessary logistics service for the rental of tankage (storage) in Paraguay, which will allow YPFB to have a greater level of autonomy in imports of diesel oil and gasoline.

YPFB is the first Bolivian company and a benchmark in the hydrocarbon industry in the region, a condition that allows it to carry out activities at an international level, after prioritizing fuel supply in the domestic market.