Brazil and Argentina have agreed to study gas exports from Argentina’s Vaca Muerta formation, potentially leading to imports of up to 30 million m3/d by 2030. A working group will analyze infrastructure needs and transportation routes, addressing Brazil’s increasing gas demand amid its limited domestic production.
On November 18, 2024, Brazil and Argentina formalized an agreement to explore the potential for natural gas exports from Argentina’s Vaca Muerta formation to Brazil. This memorandum of understanding (MoU) aims to establish infrastructure to facilitate these exports, with Brazilian authorities projecting the possibility of importing up to 30 million cubic meters per day of gas by the year 2030. Brazil’s Mines and Energy Ministry announced that a dedicated working group will evaluate the necessary measures to make this gas supply feasible. Brazil, being Latin America’s leading crude oil producer, faces challenges in meeting its domestic gas requirements, which necessitates augmenting its supplies from neighboring countries. The exploration of Argentina’s extensive Vaca Muerta shale formation, known as the second-largest shale gas reserve globally, positions Argentina as a prospective energy exporter. The working group will also assess various transportation routes for gas delivery to Brazil, with the immediate target being an initial import capacity of 3 million cubic meters per day. Among the potential routes being considered are the reversal of flow through Bolivia’s existing pipeline, a passage through Paraguay, and an alternative route via Uruguay. Furthermore, there is discussion about establishing a direct pipeline connection at Uruguaiana, a Brazilian city situated at the Argentina border, which could significantly streamline the gas supply chain.
The agreement emerged amid Brazil’s increasing demand for natural gas, coupled with its insufficient domestic production. The impetus for this collaboration underscores Brazil’s strategy under President Luiz Inácio Lula da Silva to strengthen energy security through enhanced imports. Argentina’s Vaca Muerta is a focal point in this endeavor, given its vast reserves of shale gas and oil, which are pivotal to transforming Argentina into a key player in the energy market. The cooperation between Brazil and Argentina reflects a broader trend of regional energy integration aimed at addressing the energy challenges faced by both nations.
In summary, the newly signed agreement between Brazil and Argentina paves the way for a strategic partnership aimed at increasing gas exports from Argentina, specifically from the Vaca Muerta formation. The anticipated infrastructure development and establishment of a working group signal a significant step toward meeting Brazil’s growing energy needs while reinforcing Argentina’s position as an energy exporter. The collaboration is expected to explore various transportation routes and has the potential to transform the energy landscape of both countries.
Original Source: www.worldpipelines.com
