Beginning in January 2025, Yacimientos Petrolíferos Fiscales Bolivianos will supply a substantial volume of 700,000 cubic meters of natural gas each day to the Mutún Steel Complex. This supply is crucial for the operation of the complex, which aims to enhance Bolivia’s steel production capabilities. Before this full-scale supply begins, YPFB will provide gas for testing purposes starting in August 2024, allowing the facility to undergo pre-commissioning and commissioning processes. This phased approach ensures that the plant is ready for efficient operation when the full supply commences.
Óscar Claros Dulón, the manager of Natural Gas Export Contracts for YPFB, emphasized the importance of this agreement, stating, “YPFB will provide the natural gas that will feed this plant, both for electricity generation and for industrial processes, after many years in which the development of Mutún was still a dream.” This statement highlights YPFB’s commitment to transforming the Mutún project from a long-held aspiration into a tangible reality, contributing significantly to Bolivia's energy and industrial landscape.
The natural gas purchase and sale contract, signed on July 25, 2024, between YPFB and Empresa Siderúrgica del Mutún, is pivotal for ensuring a reliable supply of gas to the steel complex. This agreement guarantees that the necessary energy resources are available for producing lightweight non-flat rolled products, as well as for the production of corrugated bars and wire rod. These products are essential for meeting the demands of the national market, thereby supporting local industries and economic growth.
The firm gas supply will also facilitate the startup of the power generation plant associated with the steel complex. Once operational, the Mutún Steel Complex is expected to connect to the National Interconnected System, further integrating its operations with Bolivia's broader energy infrastructure. This connection is vital for ensuring that the facility can operate efficiently and sustainably, contributing to the country’s overall energy security and industrial capacity.
In addition to the gas supply agreement, YPFB has coordinated with its subsidiary, Gas TransBoliviano SA, to establish the necessary contractual instruments for the transportation of gas to the Mutún Steel Complex. This collaboration is essential for ensuring that the gas flows smoothly from the main pipeline running from Santa Cruz to Brazil, ultimately supporting the operations of the steel plant. The pipeline infrastructure includes an approximately 8-kilometer section that connects directly to the complex, demonstrating the logistical planning involved in this ambitious project.
