Argentina has initiated gas exports from its Vaca Muerta shale formation to Brazil, utilising Bolivian pipelines.
This strategic deal involves TotalEnergies, Bolivia’s YPFB and Matrix Energia, and marks a significant step in establishing a long-term route for Argentina’s gas to markets in Brazil.
The gold standard of business intelligence.
Find out more
Approximately 500,000m³ of gas was exported through the Bolivian pipeline, reported Reuters, citing sources.
“The objective of the unprecedented operation is to ensure the technical viability of the logistics network,” Matrix Energia said in a statement.
Matrix Energia has entered into agreements with both Total’s Argentine division and Bolivia’s YPFB, establishing a tripartite operational agreement.
Initially, Bolivia was reluctant to charge a tolling fee for its infrastructure as the country preferred to buy gas from Argentina and resell it to Brazil.
However, negotiations have progressed after several potential supply contracts were identified, the report said.
The pipeline in Bolivia, historically carrying Bolivian gas to Brazil and Argentina, faces declining volumes due to Bolivia’s reduced gas output, necessitating new suppliers and solutions.
For Brazil, the arrival of Vaca Muerta gas aligns with President Luiz Inacio Lula da Silva’s goal of providing cheaper gas to the country’s industry.
Sustained exports could also benefit Argentina, whose gas output is increasing under President Javier Milei’s policies, potentially improving the country’s energy trade balance.
The tripartite agreement includes a spot contract allowing supply interruptions to Brazil during Argentina’s higher winter demand.
While Bolivia’s YPFB did not comment, Brazil’s Petrobras is exploring contracts to import liquefied natural gas and negotiating pipeline supplies from Argentina.
Petrobras’ former chief of energy transition, Mauricio Tolmasquim, was quoted as saying: “I think that there is a real possibility to make some deal.”
In a related development, CB&I has secured a contract for the engineering, procurement, fabrication and construction of new storage facilities at the Vaca Muerta crude oil exportation facility in Punta Colorada, Argentina.
Awarded by VMOS, the project involves building storage with a total capacity of 630,000m³, equivalent to four million barrels.