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Brazil’s Cuts of Bolivian Gas Purchases by 60% Alarm La Paz

Bolivia Brazilian Mines and Energy minister Edison Lobão announced that Brazil will temporarily shut down power plants fired by natural gas from Bolivia and will also reduce imports of the Bolivian fuel through the end of April.

The announcement was done when Brazil and Bolivia met to address the issue of the drop in demand. Bolivia was represented by Ministers Saul Avalos, Carlos Villegas and Hector Arce.

The meeting was requested by La Paz, which is concerned over Brazilian state-controlled energy giant Petrobras' January first decision to reduce its imports of natural gas from 31 million cubic meters per day in 2008 to some 19 million cubic meters per day at present.

Lobão told reporters that the drop in gas imports will allow Brazil to save close to US$ 600 million during the four-month period, adding that given the current global economic crisis, the country also is looking ahead to a possible reduction in the price of Bolivian natural gas.

Minister Lobão said the country's hydroelectric plants are generating more energy thanks to increased rainfall in recent months and for that reason Brazil no longer needs to keep operating all of its thermoelectric plants, which, because they use gas and diesel as fuel, are more costly and polluting.

In 2006, when Brazil relied on Bolivia for most of its natural gas, Bolivian President Evo Morales announced the nationalization of foreign natural gas assets, including those of Brazil's Petrobras.

Not only is Brazil the biggest consumer of land-locked Bolivia's gas, but Brazil's state-owned energy company, Petrobras, was the biggest investor in Bolivia's gas fields.



  • Show Comments (12)

  • Anderson Vieira

    Never trust a Brazilian?
    Most brazilians are good people, unfortunately some arent – the thing is we brazilian have a lower rate of people who are manipulated by the government than the US.

    Corruption in Brazil??

    9/11?? it was all fake

    There is the same amount of corruption in the US, even more.
    The only people who get to rule the country are brought up by some investor or has some money making resource.

    Do you really think that all presidents of the US were the people who chose???
    propaganda chooses the presidents!!!

    Presidents elected by the people get shot.

    I lived on both countries and studied on both, and if i put on a balance all my school friends who steal things from both sides, the american side will throw out the brazilian side from the balance.

    Kids there steal cellphones, pens, pencils, and anything else they can find.

    Its better to live in a place where the robber is known than in a place where the robber can be anyone when your not looking.

    If we keep not realizing what they are doing in the middleeast (stealing Iraqi Oil, Afgan [green thingy they have there])
    whats next? Brazils Amazon? Brazils Petrol? Brazils resources? Brazils water.

    They already have manipulated americans into thinking that we brazilians are mistreating the indians. which are inocent to the missionaries who are either spies, or are in the land to steal resources.

    Why dont they go to russia, or the same US, we are the most cristian country in the world and they come here for what? religion it isnt.

    They have already manipulated the Indians into hating their own country, while in America they killed most of them.

    Another person who contributes to this is the Governor of Mato Grosso. I somehow ask out of the air that he stops giving the US and the European reasons to throw propaganda against our treatment of the indians and the teritory

  • du48

    all gas and gaiters?
    This episode started last week when the BR government announced first a 30% cut in Bolivian gas consumption and then quickly changed to 20%. Irritated at the prospect of upsetting his friend Morales -who might again pull the gas plugs to Brazil when it suits him, Lula basically admitted on Wednesday that more public money is going to continue to flow into Bolivia -JUST as a matter of POLITICAL POLICY.Never mind that the gas is expensive and unreliable…

  • João da Silva

    Would you both mind stop arguing with each other?

    Augustus: I was just pulling Herr.Ch.CÀ‚´s leg and with his customary sense of humor, he was justreciprocating. He knows as well as I do about your background .

    Ch.C: Your explanation about Bretton Woods I is 100% correct and well remembered. We have discussed about Bretton Woods II, some months ago. You might be surprised to know that only a handful of people in my circle of friends and associates know about this Bretton Woods. So you might be happy to know that I gave them a stern lecture and some took me seriously and many did not. I am not gong to worry about the “dissidents”.

    Augustus: The “Middle Kingdom” is going to do very well in the coming years and though their GDP will surpass that of the U.S., their per capita will remain lower than that of U.S. Both the Chinese and the Indians do not pose any threat to U.S and have cozy relationship with it.I think that the aim of the leaders of IC is to keep its citizens fed, educated and contribute to their respective nations. Lets not forget that those countries have cultures dating back to thousands of years.

    Ch.C/Augustus: I can not say much about the South American countries. DnB aptly denominated it as a “Plantation” in another thread. We have huge land area and abundant resources and a combined population which is much less than that of China & India. BUT….BUT… we have a feudal and populist system elected and ratified by the serfs. The serfs have not realized that they being screwed or enjoy being done so.

    As for Herr.Ch.CÀ‚´s comment that the Brazilian Middle and the Rich classes are screwing the “underdogs”, I have a different view. The populist leader who was elected by the “underdogs” no longer belongs to their class nor the educated middle class. Only the time will say how things are going to evolve in the coming years.

    I rest my case. 😥

  • Augustus

    CH-C / JOAO – What is “wrong” with my dual nationality statement???
    Ch-C – Indeed, I fail to understand your reproducing this statement here, for JOAO? He knows I am also an American cititizen, quite well.
    He also knows (as I thought you knew) that, despite being American AND Brazilian, I far prefer Great Britain. Since I love the past (particularly the 19th century and due to my political persualtion – I favor Constitutional (and LEGITIMATE) Monarquies (such as the House of Windsor – formerly Hannover) for Great Britain (AS I WOULD ALSO favor the return of the BOURBON for France, Hohenzohlern for Germany, Habspburg for Austria AND, OF COURSE – the ORLEANS E BRAGANCA for BOTH Brazil and PORTUGAL (which I would have RE-UNITED under their name from 1808 through 1822 – The United Kingdom of Portugal and Brazil) 🙂

    As for my comment, which was made under the “Rising Chinese Power” discussion, under the separate thread, I see nothing wrong by ACKNOWLEDGING the DECLINE of the United States, acknowledging the Rise of China, and explaining that I wish such American decline could have been postponed by at least another century, for I DO consider the American Hegemony as “mostly” benign, AS IT was also the case for Great Britain during the 19th Century (taking into account the overall mores of the time period, elsewhere).

    I suppose you consider my dual nationality and my love for Great Britain as an example of your claim for not trusting Brazilians… Although I would fail to see why…

  • ch.c.

    Herr Joao….full of contraductions…on Lord Augustus !
    Why dont you re-read his own statements
    “in addition to Brazilian, I’m also a FAITHFUL American Citizen, and have been a New Yorker for LONGER time that I’ve been a Carioca. As such, I have no intention of bring down my “other country” and would have hoped that its hegemonic position would prevail for at least another century… “

    😀 😉 😉 😉 😉 😉 😉 😉 😉

  • ch.c.

    Augustus & Joao !
    Augustus, thanks for the clarification of the Venezuelian satelite.
    But in my view, Bolivia is a Brazilian satelite, that Chavez is trying to take in his sphere.
    Just look at who controls Bolivia economy, both for gas as well as soyabeans production ! Brazil….not Venezuela.

    And my conclusion remains that Brazil AS USUAL HAS BETRAYED their trading partner !
    Poo Morales should have read my repeated comments here : NEVER EVER TRUST A BRAZILIAN ! HE IS GOING TO CHEAT, LIE AND HIDE….one way or the other and rather sooner than later.
    Proven one more time ! Sorry Augustus….the Brazilian ! 😉

    This said and after all, be it Brazil, Argentina, Bolivia, Venezuela, etc etc, you are all member of the UNSURE club ?
    Correct ? 😉

    I dont see any contradiction of welcoming back someone I have disagreements with….at times.
    I did the same for Costinha the Tranny after she came out of several weeks in jail, where she learned what a gaping A.s.s….hole and what sex for food are ! And Costinha really enjoyed…..these paradisiac vacations !
    Costinha even took some weight there, He-she was well feeded.

    And regardless Lord Augustus is a Brazilian and even probably a nice guy, it remains that….NEVER EVER TRUST A BRAZILIAN !
    Of course by NEVER….. I mean 95 % of them and especially those in the middle and high income levels !
    and 100 % of their politicians….of course.
    Cheating, lying, hiding, betraying and stealing is a Brazilian Disease too many brazilians are infected with !

    I dont think Bo, Ric or Forrest disagree, in view of their writings !
    I am not alone saying the same things, but simply with different words.

  • ch.c.

    Rodrigo the new Brazilian jUNKIE ! “That’s the reason why we did not produce alot of grains last year. ”
    Do you know anything about brazilian geografy & ECONOMY ?


    Keep talking dear idiot, I keep smiling…the more you talk !
    Did you also got your SP University licence in a detergent pack as so many brazilians have, some of them in this forum ?????

    😉 😉 😉 😉 😉 😉 😉 😉 😉 😉 😉 😉 😉 😉 😉

  • Augustus

    JOAO / CH-C
    Thanks for the welcome CH-C… Certain things never change, do they? LOL (I can only especulate upon your reply, if you revisit this thread)
    Thanks Joao, for making the usual valid points

    CH-C – by “Venezuelan satelite” I meant “Bolivia” (as well as Ecuador, Cuba & Nicaragua)

  • rodrigo

    response to my friend:
    Do you know anything about brazilian geografy? I dont think you do…. Brazil has many different regiona, some of them are dried and some of them no so much…. That’s the reason why we did not produce alot of grains last year. thats also, the reason why we produced alot of energy lately!!! Before saying anything about something, maybe you should inform yourself…. you lil gringo prick!!!

  • João da Silva

    Herr.Ch.C is full of contradictions.

    1) First he welcomes back Lord Augustus 2) Then he [i](not so)[/i] humbly disagrees from the views expressed by Augustus 3) Then he gives a big lecture to Augustus about “Poor” Morales.4) Then he says “Never ever trust brazilians because they always cheat, lie and hide” totally ignoring the fact that Lord Augustus is a [i]Brazilian[/i].

    No wonder Augustus got upset and went into his “Hibernating” mode for almost a month. 😉

  • ch.c.

    Welcome back Augustus.
    1) I dont catch the relation with…Venezuelian satelite.

    2) my opinion is somewhat different than yours.
    – Poor Morales was supported for his election by Robbing Hook
    – Poor Morales was right to nationalize the gas industry, using the junkies notions of populists that even Brazil had in mind…at the energy prices peak !
    – Poor Morales was right to ask a rise in prices.
    – Poor Morales did not get fair prices even after prices hikes.
    – Somewhat unfair, in my view, that Brazil cuts Bolivia supplies by 60 % nearly overnight. Just imagine if America, Europe or Japan would do the same with one or more of their energy suppliers. Hmmmm !

    Conclusion : Poor Morales will learn the hard way what I have said so many times……NEVER EVER TRUST A BRAZILIAN FRIENDSHIP WHILE DOING BUSINESS ! Brazil is neither a healthy long term SUPPLIER of goods, nor a healthy long term BUYER of goods.
    I mentioned also SUPPLIER, because we have seen it in their meat supplies, when they constantly cheated, lied and tried to hide….until admitting the sad truth of sanitation or tracability problems !
    Now Poor Morales who was and still is anti-America, friend of Chavez, Robbing Hook and the Bimbo next door should feel
    very lonely ! And even with Chile with whom Poor Morales still refuse to “legally” sell gas due to their centuries old differences.
    What is he going to do ? smiles

    Last but not least, let me laugh…laugh…laugh…and laugh again on the increased rainfalls of the recent months in Brazil.
    I know this is true because even without speaking Portuguese, I watch regularly TV Globo Rural. Every Short video is worth
    thousands of words.
    DROUGHT….IN MANY AREAS ???????????

    Same for their coffee production with their alternate of high-low trees production.
    Not every tree is planted the same year…by definition.
    Therefore when these trees produce coffee cherries, you will AUTOMATICALLY have the alternate high-low production EVERY YEAR. Because some trees will be on the high production phase and others on the low production phase !


    Never ever trust brazilians because they always cheat, lie and hide. Proven…once more !
    😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😉 😮

  • Augustus

    EXCELLENT NEWS! It’s about time to place that SORDID & INSIGNIFICANT VENEZUELAN SATELITE in its place!
    [b]The news subject of this editorial was nearly too good to be true…

    Yet, I suspect that the horrific, nearly illiterate, low-class Brazilian president, along with his corrupted underlings may attempt to pull strings on Petrobras in order to make the 60% nationally owned oil company to either reverse (or at least update the quantity of natural gas involved in) the decision to curtail Bolivian imports.
    [i]Yet, for now, I would love to have seen the expression in the face of their equally disgusting À¢€œrulerÀ¢€Â when he heard about the current planned cuts in La PazÀ¢€¦[/i][/b]

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