Bolivia-Gazprom Initiative to Fund Massive Public Transport Move to Natural Gas

| Bolivia and Russia

Bolivia-Gazprom MoU signedAlexey Tyupanov, CEO of Moscow-based Russian Export Center Group EXIAR, and Luis Alberto Sanchez, Minister of Hydrocarbons and Energy of Bolivia, signed a Memorandum of Understanding mid-June to secure financing for supplies of gas-fueled machinery and equipment produced by Russian vehicle manufacturers.

Gazprom cites Alexei Tupanov as declaring: “EXIAR is ready to provide maximum assistance in implementing Bolivia’s plans to change the structure of the country’s energy balance by increasing the share of motor vehicles on gas engine fuel with the involvement of Russian products and technologies. The signed agreement defines a joint action plan of the parties on arranging financing of export supplies of Russian motor vehicles to the Bolivian market. ”

Within the framework of the Bolivia’s policy for changing the vehicle energy matrix, the signatories arranged for the direct credit financing by EXIAR for the provision of up to 20,000 Russian vehicles powered by natural gas for the transport sector of Bolivia.

In this regard, the Minister of Hydrocarbons, Luis Alberto Sanchez that since the policy was introduced, “400,000 gasoline vehicles have been converted to Compressed Natural Gas (CNG). The second phase of this project is to convert diesel-powered public transport vehicles to Liquefied Natural Gas (LNG) and CNG and for this we are looking at a Russian credit for the purchase of 20,000 vehicles. The credit facility from EXIAR will pass to the carriers and thus they could acquire new CNG and LNG vehicles direct from the factory.”

The MoU was signed as part of a broad-reaching agreement that will also see USD 1.2 billion invested by Gazprom in new and existing gas production in Bolivia.

Sources: Bolivia Ministry of the Presidency, Ministry of Hydrocarbons and Energy and Gazprom

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