27 Jun “Bolivian Gas Reaches Brazil”
This was the headline on the front page of El Diario newspaper on July 2, 1999, as July 1 of that year marked a historic date for the country. After 25 years of dedicated effort, the most significant gas integration project in South America was completed: the Bolivia–Brazil gas pipeline. This project, among other achievements, explains half of the economic growth over the past 15 years.
For this reason, I invite you on this historical journey to remember the tremendous national effort required for this achievement.
In Cochabamba, on Wednesday, May 22, 1974, the presidents of Bolivia (Hugo Bánzer) and Brazil (Ernesto Geisel) signed the energy cooperation agreement, which, among other matters, laid the foundation for the sale of Bolivian natural gas to Brazil. At that time, discussions revolved around a supply of 6.8 million cubic meters per day. El Diario newspaper, a valuable historical source for this post, captured the moment when both presidents signed the agreement.
On February 9, in Santa Cruz de la Sierra, the presidents of Bolivia (Hernán Siles) and Brazil (Joao Figueiredo) revived the 1974 project, focusing specifically on natural gas. I want to highlight Dr. Siles here: despite one of Bolivia’s worst economic crises, he remained committed to long-term projects, even when daily challenges consumed most of his attention.
On August 2, 1988, the presidents of Bolivia (Víctor Paz Estenssoro) and Brazil (José Sarney) signed reversal notes committing to the purchase and sale of products derived from natural gas, electricity, and natural gas itself. Notably, the Brazilian president traveled to La Paz and addressed the Bolivian Congress on this occasion.
Finally, on February 17, 1993, in Cochabamba, the presidents of Bolivia (Jaime Paz Zamora) and Brazil (Itamar Franco) signed the long-awaited natural gas purchase-sale contract between YPFB and Petrobras. Although the newspaper headline noted a minor impasse during the signing, it does not diminish the event’s significance. The article suggested the project would increase GDP by just 1%, a significant underestimate, as the project contributed far more to the nation’s prosperity.
On September 4, 1996, in Cochabamba, the presidents of Bolivia (Gonzalo Sánchez de Lozada) and Brazil (Fernando Henrique Cardoso—whom I consider one of Brazil’s finest modern presidents) signed the definitive contract and commenced pipeline construction.
Finally, on July 1, 1999, Bolivian gas began flowing to Brazil. “Bolivian Gas Reaches Brazil,” headlined El Diario. “The deal of the century… after 25 years of negotiations,” reported La Razón.
25 years of work. Five Bolivian presidents. Hundreds of Bolivian professionals. They turned this dream into reality.
I can’t help but be moved by that headline: “Bolivian Gas Reaches Brazil.” It speaks to courage and perseverance. It reminds us to dream big and proves that when Bolivians commit to a goal, we can truly achieve it.
As the contract nears its end (I’ll explain in another post why gas shipments will continue for a few more years), and as July 1, 2019, marks the anniversary of Bolivian gas reaching Brazil, I wish to honor all the people who worked visibly and often invisibly on this project that has sustained us for the past 15 years.
As long as I live and have the strength, I will remind future generations of the monumental effort our nation made to progress. More enlightened times will come when we can honor everyone involved in this project and proudly say: yes, there was a time when we dreamed big.
S. Mauricio Medinaceli Monrroy
La Paz
June 27, 2019
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