Plane and simple: Argentina to give Bolivia a jet if it needs more natural gas

The changes to the gas contract between Argentina and Bolivia will allow Buenos Aires to save some $460 million, but the deal has one curious detail on what happens if Argentina needs more supplies.

Bolivia agreed to export less gas to its South American neighbor during a low demand period, the country’s summer, relieving Argentina from paying any penalties that an earlier version of the deal included. According to the renewed agreement signed on Thursday, Argentina will import 11 million cubic meters of gas per day from January through April.

During the higher consumption period the country’s import will rise to 16 million in May and October and to 18 million from June until August.

However, if Buenos Aires needs more energy during the highest demand period, it offered to throw in an airplane with the deal to pay off the costs, according to Argentina’s Ministry of the Treasury.

The country will deliver a Pampa 3 advanced jet trainer aircraft to Bolivia if its gas imports exceed the agreed threshold by 45 million cubic meters during winter months from May to September.

Argentina’s Secretary of Energy Gustavo Lopetegui explained that thanks to the recent discovery and development of the country’s own resources of natural gas, domestic production has significantly increased, and the country had oversupplies during the summer period.

The introduction of such seasonal supplies allows Argentina to save $460 million in 2019-2020, according to the official.

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