Gazprom and Bolivia discuss prospects over use of natural gas as vehicle fuel

Russian firm Gazprom has held discussions with the Bolivian Government to explore cooperation over potential prospects regarding the use of natural gas as a vehicle fuel and small-scale LNG.

The negotiations were part of a working meeting between Gazprom management committee deputy chairman Vitaly Markelov and Bolivia Minister of Hydrocarbons and Energy Luis Alberto Sanchez at the seventh St. Petersburg International Gas Forum held in Russia.

The parties also focused on the Incahuasi field, emphasising on the active cooperation with regard to its development.

At the meeting, it was noted that the drilling locations have been determined for prospecting wells at the Azero licensed block and preparations are in progress for their construction.

The parties are also working to prepare the agreement for creating a joint venture (JV) with respect to the projects in the fields.

Simultaneously, Gazprom EP International and Gazprom Marketing & Trading signed a memorandum of understanding (MoU) with the Bolivian Ministry of Hydrocarbons and Energy, and Yacimientos Petroliferos Fiscales Bolivianos (YPBF).

The MoU is said to represent the parties’ plan to set up a JV for gas marketing in Argentina and Brazil.

It follows an agreement regarding the roadmap for implementing projects in Bolivia was signed last year by Gazprom with YPBF and the Ministry.

Gazprom is working with Total E&P Bolivie, TecPetrol de Bolivia, and YPBF Chaco to develop the Ipati and Aquio blocks comprising the Incahuasi field.

Last year, the company also signed an agreement with YPBF to explore the La Ceiba, Vitiacua and Madidi blocks located in Bolivia.

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Image: The signing ceremony. Photo: courtesy of Gazprom.