Brazil and Argentina signed an agreement to explore gas export infrastructure from Argentina’s Vaca Muerta shale formation, potentially enabling imports up to 30 million m³/d by 2030. A working group will assess supply viability, examining multiple transport routes including potential pipeline reversals and direct connections. This initiative is part of Brazil’s strategy to meet rising domestic gas demands.
On November 18, 2024, Brazil and Argentina formalized an agreement to initiate studies on developing infrastructure for natural gas exports from Argentina, particularly from the Vaca Muerta shale formation, to Brazil. This cooperation aims to facilitate the export of natural gas, with Brazilian officials projecting potential imports of up to 30 million cubic meters per day (m³/d) by the year 2030. A dedicated working group will assess various infrastructural measures and potential transport routes to ensure a sustainable energy supply from Argentina to Brazil. The MoU particularly emphasizes evaluating the feasibility of reversing the flow of Bolivia’s pipeline, constructing a route through Paraguay, and considering an additional route via Uruguay. Furthermore, a direct connection at Uruguaiana, a Brazilian city adjacent to the Argentine border, will also be explored. Brazil’s Mines and Energy Minister Alexandre Silveira indicated that the immediate potential for gas imports could begin at 3 million m³/d, with significant scaling expected in the coming years. This agreement aligns with President Luiz Inacio Lula da Silva’s commitment to bolster Brazil’s gas supply to meet escalating domestic demands, given the country’s status as Latin America’s largest crude oil producer but with insufficient gas output.
The agreement between Brazil and Argentina takes place against a backdrop of increasing energy needs in Brazil coupled with Argentina’s untapped energy resources, especially the Vaca Muerta formation, one of the largest shale gas and oil reserves globally. As Brazil seeks to augment its gas supplies, the agreement marks a strategic partnership to ensure energy security for both nations. Argentina’s state oil firm, YPF, is at the forefront of harnessing the potential of Vaca Muerta, aligning with regional efforts to enhance energy exports while meeting domestic and international energy demands.
The recent agreement between Brazil and Argentina signifies a pivotal move in enhancing regional energy cooperation, with potential implications for natural gas supply chains in South America. By establishing a dedicated working group to explore and analyze export routes and infrastructure development, both nations are reinforcing their commitments to energy security. With Brazil’s increasing demand for natural gas and Argentina’s rich reserves, this collaboration could lay the groundwork for a robust energy partnership in the future.
Original Source: www.worldpipelines.com
