Brazil’s Grupo Matrix Energia and Argentina’s TotalEnergies have signed an agreement with Bolivia’s YPFB to transport natural gas from Argentina’s Vaca Muerta shale formation. This deal addresses supply dynamics and aims to facilitate gas exports into Brazil while enhancing regional energy integration. YPF is also advancing its LNG projects to boost production and exports from Vaca Muerta.
Brazil’s Grupo Matrix Energia and Argentina’s TotalEnergies have reached a significant agreement with Bolivia’s YPFB to facilitate the transportation of natural gas from Argentina’s Vaca Muerta shale formation. Initially signed on November 22, this collaboration aims to optimize regional energy supply dynamics by leveraging Bolivia’s extensive transport infrastructure. The deal will enable Argentine gas supplies to flow into Brazil, thus promoting energy integration across South America.
As Bolivia has experienced a reduction in its natural gas exports, both Argentina and Brazil are actively seeking new supply pathways. Argentina, known for having the second-largest shale gas reserves globally, is striving to establish itself as a major gas exporter. However, it is still in the process of developing the requisite pipeline networks and negotiating commercial tariffs essential for this endeavor.
The deal allows YPFB’s gas transportation companies to operate through its existing 1,000-kilometer pipeline system, which connects Argentina and Brazil. Furthermore, in addition to the transport agreement, TotalEnergies and Matrix Energia have entered into a purchase and sales contract. YPFB has also confirmed that TotalEnergies received two permits for the export of natural gas sourced from the Austral and Neuquen Basins to Brazil.
In a related development, YPF is reportedly merging its liquefied natural gas (LNG) project with a partnership involving Pan American Energy Group and Golar LNG. This strategic initiative is expected to enhance Vaca Muerta’s production and exports, consequently strengthening Argentina’s presence in the global LNG market. According to recent reports, YPF plans to secure $2 billion in financing for its Vaca Muerta Sur pipeline project by the second quarter of 2025. This project aims to transport an additional 390,000 barrels per day of oil from Vaca Muerta to a coastal export terminal in Rio Negro province, Argentina, and is managed by Vaca Muerta Oil Sur, controlled by YPF.
The collaboration between Brazil, Argentina, and Bolivia’s state energy company YPFB is emerging against the backdrop of changing energy supply dynamics in South America. With Bolivia experiencing declining gas exports, Argentina is looking to assert itself as a gas exporter by tapping into its significant shale gas reserves at Vaca Muerta. The strategic agreement not only facilitates gas transportation but is seen as a crucial step in strengthening regional energy ties and ensuring reliable energy supply to Brazilian consumers.
In summary, Brazil and Argentina’s partnership with Bolivia’s YPFB marks a pivotal development in addressing the changing energy landscape in South America. The collaboration is poised to enhance regional energy integration by utilizing existing infrastructure to transport Argentine gas to Brazil, with Argentina aiming to solidify its position as a gas exporter. Additionally, YPF’s efforts towards expanding production and exporting capabilities reflect a significant move in the regional LNG market.
Original Source: www.offshore-technology.com
