Argentina Pledges to Pay Overdue Gas Bill

Source: Reuters 1/6/2016, Location: South America

Argentina's new center-right government has vowed to pay a $202 million debt owed to Bolivia for natural gas imports by March, the head of Bolivia's state-run energy firm YPFB said.

YPFB President Guillermo Acha said ENARSA, Argentina's state-owned power company, "had promised to pay the full amount in the first quarter of 2016."

Officials at ENARSA were not immediately available for comment.

Last week, Argentina's new Finance Minister Alfonso Prat-Gay acknowledged the previous government, led by leftist President Cristina Fernandez, had failed to pay Bolivia since July as it struggled to shore up the peso currency and its foreign exchange reserves.

Bolivia sells about 16 million cubic meters of natural gas to Argentina each day.

Argentina sits atop some of the world's largest untapped shale oil and gas resources but Fernandez's state controls on the economy deterred investors. The South American country is currently a net energy importer.

President Mauricio Macri, who took office on Dec. 10, also inherited an $80 million debt owed to neighboring Paraguay for electricity imports.


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