The 150-kilometer pipeline connects YPFB’s terminal in Arica, Chile, with Charaña on the Bolivian border. The maritime terminal currently receives liquid hydrocarbons from tanker vessels and dispatches product to Bolivia via tank trucks. The reversal project would enable initial diesel transport capacity of 15,000 barrels per day, with plans to increase flows to 25,000 bpd. Planned infrastructure includes construction of four intermediate pumping stations with associated power systems, fuel storage tanks, and control rooms.
The project advances as President Rodrigo Paz Pereira’s administration confronts an energy and social emergency declared through Supreme Decree 5517. On September 7, Paz signed Decree 5701 authorizing the Gualberto Villarroel refinery in Cochabamba and Guillermo Elder Bell refinery in Santa Cruz to exceptionally import crude oil, process it, and sell derivatives directly to the domestic market at market prices without state subsidies. Both refineries, operated by YPFB Refinación, processed an average 24,067 bpd during January-July 2026, approximately 38 percent of their combined 63,750 bpd design capacity, due to reduced national crude oil and condensate production.
Government projections indicate that importing 10,000 bpd of crude would increase refinery participation in domestic gasoline supply from 27 percent to 40 percent within one year, and in diesel from 5 percent to 8 percent. In the second year, crude imports would rise to 20,000 bpd, lifting internal diesel participation to 16 percent. The decree also aims to optimize pipeline transportation system utilization and reduce import logistics costs. Paz separately issued Decree 5698 in September establishing a transitional framework to guarantee diesel supply for small agricultural producers.
This article was curated and published as part of our South American energy market coverage.
