Capstone Turbine Corporation, the world’s leading clean technology manufacturer of microturbine energy systems, announced that it continues to expand its market presence in Latin America with its first long-term Factory Protection Plan (FPP) service agreement in Bolivia for a 600 kilowatt (kW) microturbine system. Despite the recent impact from Covid-19, the countries in Latin America represented 13% of Capstone’s total revenues in the fiscal year ended March 31, 2020, compared to 12% of total revenues in the prior fiscal year.
Gas sales to Argentina reached their maximum volume of 18 million cubic metres per day (MMm3d) in the first three days of June, as contemplated in the 4th addendum signed in February 2019. In May shipments maintained an average volume of 16 MMm3d.
The WTI (West Texas Intermediate or US crude) oil barrel, the reference for Bolivia, was close to $40 a barrel. In Bolivia, it should not have an immediate effect since gas sales prices calculated quarterly for an average daily rate of the previous quarter. They estimate that the impact of the price will be felt in the June-September quarter.
The airline Amaszonas sent the government a package of urgent measures to save Bolivian commercial aviation. One hundred mn dollars for a period of three years was required for working capital for Amaszonas and Ecojet. $52 million, was already requested by the state airline BoA. They also asked for a 50% reduction in the price of fuel for domestic operations.
According to the Bolivian Institute of Foreign Trade (IBCE), exports of fruit until April this year recorded $ 12.2 million for the sale of 44 thousand tons, experiencing a drop of 6% in value and 15% in volume compared to the same period of last year. From February to date producers stopped receiving $21 million.
The natural decline of the fields and the drop in natural gas exports are the main factors leading to a considerable reduction in the production of liquid hydrocarbons which, according to forecasts by the Jubilee Foundation, will fall by at least 40 per cent by 2025, taking into account that the production of liquids fell by 25 per cent from 2014.
According to the NGO Productivity Biosphere Environment (Probioma), Bolivia exported $1.2 billion worth of agricultural products in 2019, while Peru exported $7 billion, without GMOs and on almost the same amount of arable land. In 2018, Peru had a cultivated area of 3.4 million hectares, and Bolivia had 3.8 million hectares. Peru generates $2,036 in agricultural exports per hectare and Bolivia just $322 and with subsidies in diesel and preferential markets from the Andean Community of Nations.
The cultivated area is around 165,000 hectares, with a projected production of 11.5 million quintals of sugar and 200 million litres of alcohol in the 2020 harvest. 50% of the output will go to the internal market, and the other 50% will be exported.
The volume of real estate transactions reduced to 10% of the level it was before the health emergency in the country. The impact was mainly on sales, while the effect on rentals was severe, but not as significant.
In 2017 Bolivia exported a total of 37 tons, worth US$ 1,073.7 million; in 2018 it sold 40 tons for over US$ 1,170.8 million; in 2019 it shipped 51 tons for US$ 1,743.2 million. Between January and April this year, almost 12 tons were exported for $446 million. The data shows that there are two export items: gold ores and their concentrates; and the other forms of raw gold, which is about 90% exported.