YPF - Petrobras faces natural gas supply crunch after Bolivia cut supplies

Petrobras (NYSE:PBR) said on Wednesday that it may need to import more liquefied natural gas following an unexpected cut in shipments of natural gas from Bolivia. The company said Bolivia's YPFB (YPF) state oil company is diverting natural gas to Argentina, cutting the supply to Petrobras (PBR) by 30% this month, which caused a loss of ~6M cm/day of gas per day. As a result, YPFB has been delivering only 14M cm/day of gas instead of the usual 20M cm/day of gas under the terms of its contract with Petrobras (PBR), which said it would respond with "fitting actions" but offered no further details. Separately, the Brazilian government is expected to replace everyone it named previously to the Petrobras (PBR) board, local newspaper O Globo reported, according to Reuters. Earlier this week, Brazil's government appointed Economy Ministry official Caio Mario Paes de Andrade to be the state-controlled company's next CEO.

For further details see:

Petrobras faces natural gas supply crunch after Bolivia cut supplies