Franklin Molina: “Our refineries supply 15% of the fuel needed nationwide”

Bolivia’s fuel problems and the measures taken to better distribute it among the country’s nine sectors were among the topics discussed with EL DEBER by the Minister of Hydrocarbons and Energy, Franklin Molina. He also highlighted some ongoing energy generation projects.

– The Bolivian Fiscal Oil Field (YPFB) produces 5,000 barrels of diesel and 11,000 barrels of gasoline per day, why are their supplies not even close?

At the national level, today, due to the decline in liquid production, approx. Our refineries supply 15% of total supply The national average fuel demand. These supplies are being delivered at a difficult time, mainly because 85% of the pressure on demand must also come from other industries.

During this supply crisis, a controlled supply plan was first developed with the goal of ensuring that all sectors (mainly public transport and services) were not paralyzed.

Obviously, difficulties have arisen in the face of this, which raises not only logistical problems but also problems in the international context.

Factors such as weather conditions, market influences (including those caused by what’s happening in the Middle East and Europe) have combined to change these supply chains.

– What is the current status of payments to fuel suppliers?

This is the report that YPFB must provide. The company is responsible for the precise execution of this management, not only contract management, but also monitoring of supplier payments. I understand today YPFB has a bidding mechanism. They are the ones who have to report this situation.

– Considering recent climate and infrastructure issues, what plans do you have to improve the logistics of importing and distributing fuel?

Regarding the storage issue, Bolivia should have anticipated this difficulty, as a large part of the fuel comes mainly from refineries around the world and is shipped by sea. Therefore, it is very important to have storage plants near or in ports.

Bolivia has a storage plant in Arica (Chile). We are increasing storage capacity There, we can have two or three tanks.

We are also working on reversing the construction of the Sica Sica – Arica pipeline. With this reversal, we will be able to import diesel, gasoline and crude oil, and even maximize the import of petroleum, due to its lower cost and greater availability of products, but it will also allow us to develop a plan to address the blockade.

Likewise, we are working to diversify our import points, such as Argentina, Brazil, Chile, Paraguay and Peru. The supplier mix is ​​expanding and we are diversifying our import methods, not only by tanker, but also by ship, barge, train and pipeline.

Investments are also being made in the Paraguay-Paraná waterway and in acquiring its own storage points in strategic locations abroad.

– What strategies are you implementing to diversify fuel supply sources and reduce reliance on imports?

This is biofuel policy. This is national policy. Our Decree 5135 allows blending of biodiesel and dry diesel up to 25%. We also offer alcohol, dry ethanol and blends up to 85% ethanol, as well as incentives for the marketing of vehicles with FlexFuel technology.

We have issued a number of ministerial decisions during this government, for example, approving not only regulations but also the operation of biodiesel plants. We are working to involve the private sector in biodiesel production In addition, we have submitted a draft bill in Parliament, a proposal to amend Law 1098, which will allow diversification of raw materials and biofuel production and private investment.

That’s part of what we’re doing on the political side. And again, on the plant side, we have a plan for three biodiesel plants that will save us millions of dollars a year.

Therefore, we are taking a series of actions that are also necessary for this purpose. Another thing must be to maximize the import of crude oil, because of its lower cost and greater availability of products, I mean gasoline, diesel, grease and oil, as well as greater production of additives of vegetable origin to replace liquid fuels, they are defective.

– What investments are planned to modernize Bolivia’s refineries and fuel storage facilities? Are there any collaborations with the private sector or international financing?

We are working on a proposal. President Luis Arce launched this challenge to increase the production needed for biodiesel production. What does this mean? For example, we have small plants in order to produce biodiesel, not only with the crude oil that YPFB needs today, but also with biodiesel from private sources.

We are even holding meetings with the private sector to encourage exactly this kind of production. We believe This will not only expand the agricultural sector Because not only is it biodiesel, soybean oil is also there to produce food, but it also generates foreign exchange, which is what the country needs.

What is actually sought is incentives for projects that can reduce the huge gap that exists between the production of refineries, the inclusion of imported crude oil, on the one hand, and the production of biodiesel plants on the other. , which will have a multiplier effect on the creation of jobs, the increase of activities, and even the development of important services.

– What initiatives is the government promoting to encourage the use of alternative and renewable energy?

We are in the framework of the expansion plan for the electricity sector as part of the Energy Strategy 2050, which was socialized in the framework of a forum about a month ago. In line with this, we are implementing regulations to amend the decree on distributed generation that we published in 2021.

In this framework Regulations have been enacted to expand alternative generation capacity. Thus, for example, private companies, municipalities, mayors, in short, anyone can inject this generation into the network and become not only self-sufficient but also generate income.

Now, as part of the policies and projects, we are implementing some of them. For renewable energy, in addition to the hydropower projects being executed, additional work is also being done on the significant capacity of wind power and photovoltaic projects.

We are now in the process of completing our Phase II expansion in Santa Cruz to realize all that this 108-megawatt increase means.

Our projects are financed by the French Development Agency (AFD), and likewise we are involved in the management and execution of investment projects in the Western Region, an area with a greater potential for photovoltaic resources. We refer to the Oruro and La Paz projects, which today implement not only such photovoltaic projects to diversify the sources of the electricity matrix.

– How is the fuel shortage affecting the Bolivian economy? What are they doing to mitigate the impact on key sectors like transportation or agriculture?

The problem of increasing subsidy costs in the country year by year has obviously also had an impact on the national economy.

YPFB is managing the supply program, but the approach is also tied to a set of actions, a set of policies that we are implementing today. These policies would undoubtedly be impossible to achieve without the will of different state institutions.

When I mention institutions, I don’t just mean the executive institutions, it is understood that the involvement of the legislative body is also important for the approval of regulations, such as amending the law to create a new biofuels law and to approve contracts that allow us to increase production, in addition to regulations that help us better monitor border controls for imported fuels.

– What emergency measures are being taken to ensure immediate fuel supplies while long-term solutions are implemented?

We had to activate the authorization for the supply of fuel to the port of Arica. This authorization had a logic, which was to mobilize the four ships that were arriving at the port almost day after day and could not disembark. Given this situation, we had a dialogue at the highest level.

president Arce even spoke personally to President Boric (Chile) It is to make this unloading possible and to enable unloading not only at the Arica terminal but also at other parallel locations, since two of the four vessels are loaded with diesel, one with gasoline and one with crude oil.

We are also in contact with Brazil to look at supply issues through Petrobras, a new project that we have been working on with YPFB, but also with other entities to ensure that we can respond quickly and immediately, which is what we actually need for the population.

We have also received political reactions from some sectors and we do not understand what the purpose of this mobilisation and self-isolation is.

– What concrete steps is the Ministry taking to encourage dialogue between different political factions and affected sectors?

We have been in dialogue with the private sector and we have held different meetings within the framework of that dialogue. Fortunately The measures have been lifted and these blockages have been suspended In the case of Oruro, there are about 17 tanker trucks at a single site that cannot even go to gas stations to deliver products, or in other cases are not allowed to move freely, which would also guarantee the logistics of fuel.

– Is it possible that food supplies are at risk due to a lack of fuel? What if the government is affected by a lack of dollar imports?

Well, the dollar problem is what the country is experiencing, and logically this creates problems all along the chain. The fuel problem is undoubtedly the driving force behind all production activities. It is worth mentioning that As long as fuel can reach the point of demand, logically, not only can the supply of different economic sectors be guaranteed, But the activities are different.

The adverse situation that arose last week has been overcome. We hope that in the next few days we will be able to return to normalcy, even if we face some blockades.