Brazil and Argentina signed an MoU on November 18, 2024, to explore gas exports from Argentina’s Vaca Muerta formation. The agreement anticipates Brazilian imports of up to 30 million m3/d by 2030, addressing Brazil’s growing gas demand. The working group will study various pipeline routes and assess infrastructure needs for this initiative.
On November 18, 2024, Brazil and Argentina formalized an agreement to conduct studies on the establishment of infrastructure aimed at exporting natural gas from Argentina to Brazil, particularly focusing on the Vaca Muerta gas formation. This initiative, as reported by Brazilian authorities, holds the potential to facilitate gas imports reaching as high as 30 million cubic meters per day by the year 2030. The memorandum of understanding (MoU) will initiate the formation of a working group responsible for identifying essential measures that would enable viable gas supply from Argentina. The Brazilian Ministry of Mines and Energy emphasized that although Brazil is the largest crude oil producer in Latin America, its current natural gas production falls short of escalating domestic demands, prompting President Luiz Inacio Lula da Silva to prioritize increasing gas supplies. The Vaca Muerta formation is recognized globally as the second-largest reserve of shale gas and fourth-largest reserve of shale oil, with Argentina’s national oil company YPF spearheading efforts to transform the country into a prominent energy exporter. The agreement entails a detailed evaluation of potential transportation routes for gas to Brazil, which might include a reversal of flow in the pipeline from Bolivia, as well as potential routes traversing Paraguay and Uruguay. Furthermore, there will be an assessment regarding the feasibility of establishing a direct connection in Uruguaiana, a Brazilian city adjacent to the Argentine border.
Brazil and Argentina’s agreement reflects a strategic approach to addressing Brazil’s growing energy needs, specifically its reliance on natural gas imports. The Vaca Muerta formation is a significant contributor to Argentina’s energy landscape, having the capability to supply substantial quantities of gas, necessary for Brazil to meet its domestic consumption demands. This partnership is indicative of regional cooperation aimed at enhancing energy security and fostering economic growth through shared resources.
In conclusion, the signing of the memorandum of understanding between Brazil and Argentina symbolizes a vital step towards bolstering energy supply chains in South America. By exploring the potential of Vaca Muerta’s natural gas reserves, both nations hope to enhance Brazil’s energy security while establishing Argentina as a key player in the energy export market. The formation of a dedicated working group to evaluate transportation routes represents a proactive measure towards achieving these ambitious goals.
Original Source: www.worldpipelines.com
