As of July 15 and until December 2006 Bolivia has secured the Argentinean market to sell its gas, setting the referential price in the region in five U.S. dollars per one million British Thermal Units (BTU’s), at the same time expanding the volume of gas sold, which will guarantee the supply of gas in the north of Argentina.  The contract that Bolivia had with Argentina was of 3.38 U.S. dollars per million BTU’s.  

After December 31, 2006 the price of gas will be calculated using a formula that compares the cost of natural gas to that of methane, butane and natural gasoline according to the Bolivian Minister of Hydrocarbons, Mr. Andres Soliz Rada.  

The agreement with Argentina implies a benchmark price for the gas market since it is the highest price being paid in South America. 

In a ceremony Presidents of both Bolivia and Argentina, Evo Morales and Nestor Kirchner, signed this mega energy deal, and additionally the Kirchner administration pledged to grant an initial $120 million dollar loan to Bolivia in order to install a liquid separation plant in the Bolivian border town of Yacuiba.  An additional $230 million loan is expected to be granted in the future.