GASBOL Gas Pipeline

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The GASBOL Gas Pipeline, also known as the Bolivia–Brazil pipeline, is an operating natural gas pipeline in Bolivia and Brazil.

Location

The pipeline runs from Río Grande in Bolivia's Santa Cruz department to Canoas in the state of Rio Grande do Sul in southeastern Brazil, passing through the Brazilian states of Mato Grosso do Sul, São Paulo, Paraná, and Santa Catarina.

Compressor stations along the pipeline's route are at Izozog, Chiquitos, Roboré, and Yacuses, Bolivia, and at Corumbá, Miranda, Anastácio, Campo Grande, Ribas do Rio Pardo, Três Lagoas, Mirandópolis, Penápolis, Iacanga, São Carlos, Paulínia, Capão Bonito, Araucária, Biguaçu and Siderópolis, Brazil. At Paulínia, a spur pipeline branches east to the metering station at Guararema.[1]

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Project Details

  • Operator: Gas Transboliviano S.A. (GTB) and Transportadora Brasileira Gasoduto Bolivia-Brazil S.A. (TBG)[2][3]
  • Owner: Petrobras (51%), BBPP Holdings Ltda (29%), YPFB Transporte do Brasil Holding Ltda (12%), Corumbá Holding SARL (8%)[4]
  • Parent Company: Petrobras (51%), Fluxys Belgium NV (37%)[5], YPFB (12%)[2][4]
  • Capacity: 11 bcm/y (30.08 MMm3/d)[6]
  • Length: 3,150 km / 1,960 miles[6]
  • Diameter: 16, 18, 20, 24, 32 inches[7][8]
  • Status: Operating
  • Start Year: 1999[9]

Background

The Bolivia–Brazil pipeline (GASBOL) pipeline is the longest natural gas pipeline in South America. The 3,150-km (1,960-mi) pipeline connects Bolivia's gas sources with the southeast regions of Brazil.[10]

Technical Description

The pipeline was built in two stages. The first 1,418-km (881-mi) long stretch, with a diameter varying from 610 mm to 810 mm (24 in to 32 in), started operation in June 1999. The 557-km (346-mi) Bolivian section of this initial stage extends from Río Grande (40 km south of Santa Cruz de la Sierra) to Mutún near the Bolivian-Brazilian border.[11] After crossing the border between Puerto Suárez and Corumbá (Mato Grosso do Sul), it continues east past Campinas in the state of São Paulo to Guararema, where it's connected with the Brazilian network. The second 1,165-km (724-mi) long stretch, with a diameter varying from 410 mm to 610 mm (16 in to 24 in), which links Campinas to Canoas, near Porto Alegre in Rio Grande do Sul, was completed in March 2000.[12]

The maximum capacity of the pipeline is 11 billion cubic feet per year of natural gas. The total cost of the pipeline was US$2.15 billion, of which US$1.72 billion was spent on the Brazilian section and US$435 million on the Bolivian section.[13]

Expiration of original contract

TBG's original 20-year contract for the pipeline, signed in 1999, was set to expire on Dec. 31, 2019. The contract allowed for a maximum supply of 30 million cubic meters of natural gas per day, with 80% of that (24 million cubic meters per day) to be supplied on a "take or pay" basis. In February 2017, Petrobras reported that levels of natural gas transported through the pipeline had dropped 45% below peak capacity due to weak demand associated with Brazil's economic crisis. The drop-off in demand, combined with other developments (Brazilian initiatives aimed at increasing energy self-sufficiency, depletion of Bolivia's natural gas reserves) raised questions regarding renewal of the pipeline's contract upon its expiration in 2019. The Brazilian government announced that it would seek alternative buyers for gas transported through the pipeline if Petrobras failed to renew the contract at current levels. A December 2018 tender for a new contract was delayed,[14] and a June 2019 tender was also delayed.[15]

Contract extensions and modifications - 2020 and beyond

In December 2019, the original contract was extended for 70 days, with Bolivia agreeing to continue supplying Brazil's Petrobras with up to 19.25 million cubic meters (MCM) of gas per day through March 10, 2020.[16] In March 2020, the contract was further extended. Under the terms of the new contract extension, Bolivia's national oil and gas company YPFB was to supply Petrobras with 14 to 20 million MCM per day until Petrobras used the full remaining quota of gas contracted in 1999 but never used during the original 20-year contract period. The contract extension will expire no later than 2026. Brazil estimates that it will take four to six years to use up its remaining contracted quota of gas.[17]

With Petrobras reducing its maximum imports through the pipeline from 30 MCM per day to 20 MCM per day, there is now room for other Brazilian companies to import Bolivian gas via the Gasbol pipeline.[17] The Brazilian government confirmed that it would allow YPFB to sell gas to Brazilian end users other than Petrobras starting in 2020[18]; volumes sold to new customers in Brazil's Rio Grande do Sul state were expected to triple between 2020 and 2022, growing from 1.2 to 3.6 MCM per day.[19]

Operator

The pipeline is operated by Gas Transboliviano S.A. and Transportadora Brasileira Gasoduto Bolivia-Brazil S.A. (TBG). TBG, which oversees operations of the pipeline within Brazil, is jointly owned by Petrobras (51%), Fluxys Belgium NV (37%) and YPFB Transporte do Brasil (12%).[2]

Change in Ownership

In December 2020, Petrobras announced that it would sell its 51% stake in the Gasbol pipeline.[20][21] In January 2021, EIG Energy Partners sold its existing stake in the pipeline to Fluxys Belgium NV in an effort to circumvent regulatory obstacles to bidding on Petrobras's larger share.[3] In March 2021, Fluxys increased its stake in the pipeline to 33% with the acquisition of assets from Total Gas & Power Brazil.[2] In May 2021, a consortium formed by EIG, Fluxys, and Enbridge reportedly made a non-binding offer for Petrobras's share of the pipeline.[22][23]

In August 2021, Reuters reported that EIG Global Energy Partners had made a separate, binding offer worth several hundred millions of dollars to acquire Petrobras's majority stake in the pipeline.[21] In March 2022, Petrobras confirmed that EIG Global Energy Partners had placed a binding offer, noting that further negotiations were necessary before any transfer of ownership could take place. The selling price for Petrobras's stake in the pipeline was expected to be between US $500 million and US $1 billion.[24][25]

Articles and resources

References

  1. "O GASBOL: Traçado do Gasoduto Bolívia-Brasil". TBG. Retrieved August 20, 2020.{{cite web}}: CS1 maint: url-status (link)
  2. 2.0 2.1 2.2 2.3 "Total pulls out of Bolivia-Brazil pipeline system". BNamericas.com. March 17, 2021.{{cite web}}: CS1 maint: url-status (link)
  3. 3.0 3.1 "EIG sells stake in Brazil-Bolivia pipeline, eyes Petrobras assets". Reuters. January 5, 2021.
  4. 4.0 4.1 "Shareholding Structure". TBG. Retrieved 2023-08-20.{{cite web}}: CS1 maint: url-status (link)
  5. "Annual financial report 2021 (p 113)" (PDF). Fluxys. March 2022.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "Informações Técnicas do Gasoduto". TBG. Retrieved 2022-08-04.{{cite web}}: CS1 maint: url-status (link)
  7. "Gasoduto". SCGÁS - Companhia de Gás de Santa Catarina. Retrieved 2023-08-20.{{cite web}}: CS1 maint: url-status (link)
  8. "Características Físicas do Transporte de Gás Natural, por Empresa e Gasoduto". Agência Nacional de Transportes Terrestres - ANTT. 2004.{{cite web}}: CS1 maint: url-status (link)
  9. "Plano Decenal de Expansão da Malha de Transporte Dutoviário – PEMAT 2013-2022 (pp 11-12)" (PDF). Ministério de Minas e Energia do Brasil. March 5, 2013.{{cite web}}: CS1 maint: url-status (link)
  10. Project Closing Report, Natural Gas Centre of Excellence Project, Mar. 20, 2005, archived on the Wayback Machine, accessed February 2018
  11. "El Gasoducto Bolivia-Brasil", Gas Transboliviano website, accessed March 2018.
  12. Mares, David R (May 2004). "Natural Gas Pipelines in the Southern Cone" (PDF). CESP Program on Energy and Sustainable Development / Baker Institute for Public Policy Energy Forum.{{cite web}}: CS1 maint: url-status (link)
  13. South American Gas. Daring to Tap the Bounty (PDF). International Energy Agency. 2003. ISBN 92-64-19663-3. Retrieved 2007-05-12.
  14. Brazil oil regulator says Gasbol pipeline tender delayed, Reuters, Dec. 11, 2018
  15. Brazil postpones tender to contract Gasbol pipeline capacity, BN Americas, Jun. 11, 2019
  16. "Bolivia's YPFB strikes transition deal with Petrobras to extend natural gas exports". Reuters. December 28, 2019.
  17. 17.0 17.1 "Petrobras diz que precisará de até 6 anos para consumir gás contratado em aditivo". Valor Econômico. March 6, 2020.
  18. "Bolivia cleared to sell gas to end-users in Brazil". Argus Media. January 13, 2020.{{cite web}}: CS1 maint: url-status (link)
  19. "Brazil Clears Bolivian Gas Company Use Pipeline". Pipeline & Gas Journal. January 10, 2020.{{cite web}}: CS1 maint: url-status (link)
  20. "Petrobras vai vender sua participação no gasoduto Brasil-Bolívia". O Petróleo. December 28, 2020.{{cite web}}: CS1 maint: url-status (link)
  21. 21.0 21.1 "EIG Global Energy Partners submits offer for Petrobras pipelines in Brazil, source says". Reuters. August 25, 2021.{{cite web}}: CS1 maint: url-status (link)
  22. "Enbridge, Fluxys, EIG bid for Brazil's top natgas import pipeline, sources say". Reuters. May 21, 2021.{{cite web}}: CS1 maint: url-status (link)
  23. "Petrobras recebe ofertas por fatia em gasoduto, dizem fontes". Forbes Brasil. May 21, 2021.{{cite web}}: CS1 maint: url-status (link)
  24. "Petrobras inicia negociaciones con EIG para vender su gasoducto Bolivia-Brasil". AméricaEconomía. March 16, 2022.
  25. "EXCLUSIVE Petrobras and EIG near deal for Bolivia-Brazil gas pipeline". Reuters. March 14, 2022.

Related GEM.wiki articles

External resources

External articles

Existing Pipelines in Latin America

Wikipedia also has an article on GASBOL Gas Pipeline (GASBOL). This article may use content from the Wikipedia article under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License].