Brazil and Argentina signed an agreement on November 18, 2024, to study natural gas exports from Argentina’s Vaca Muerta formation. This MoU aims to establish infrastructure that could enable Brazil to import up to 30 million m³/d of gas by 2030, addressing its rising domestic demand for energy resources. The working group will evaluate various routes for gas transportation.
On November 18, 2024, Brazil and Argentina formalized an agreement to explore the development of infrastructure for natural gas exports from Argentina’s Vaca Muerta formation to Brazil. According to Brazilian authorities, this initiative could potentially facilitate imports of up to 30 million cubic meters per day (m³/d) of gas by 2030. A working group will be established to evaluate measures necessary for making the gas supply feasible, particularly focusing on the extensive Vaca Muerta reserves. This agreement comes as Brazil, the largest crude oil producer in Latin America, seeks to augment its gas supply to meet rising domestic demand, a priority for President Luiz Inacio Lula da Silva. The Vaca Muerta formation, recognized as the second-largest reserve for shale gas and the fourth-largest for shale oil globally, is being actively developed by Argentina’s state-owned oil firm, YPF, which aims to position the country as a significant energy exporter. The working group’s mandate extends to analyzing potential transportation routes for this gas, including the reversal of Bolivia’s pipeline flow, pathways through Paraguay and Uruguay, and a prospective direct link at Uruguaiana, which borders Argentina. Brazilian Mines and Energy Minister Alexandre Silveira emphasized that the project’s initial scope could start with imports of 3 million m³/d, with long-term aspirations of reaching 30 million m³/d by 2030.
The energy landscape in South America is evolving, with countries like Brazil and Argentina exploring ways to enhance energy independence and export capacity. Brazil has long been dependent on various energy resources, and the burgeoning natural gas demand necessitates diversifying its supply sources. The discovery and exploration of Vaca Muerta, one of the largest shale formations in the world, presents a unique opportunity for Argentina. However, effectively transporting this resource requires significant infrastructure development and cooperation between the two nations, as addressed in their recent agreement.
The agreement reached between Brazil and Argentina marks a pivotal step towards enhancing regional energy cooperation, potentially facilitating substantial natural gas exports from Argentina’s Vaca Muerta formation. By establishing a working group to assess the infrastructure needs for this initiative, both nations aim to address Brazil’s growing energy demands while positioning Argentina as a formidable energy exporter. This collaboration exemplifies the importance of strategic partnerships in navigating the complexities of energy supply in Latin America.
Original Source: www.worldpipelines.com
