Bolivia to Transport Argentine Gas to Brazil

Bolivia to Transport Argentine Gas to Brazil
Bolivia to Transport Argentine Gas to Brazil

Bolivian state oil firm Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) said it would be able to transport 3 million cubic meters of Argentine gas to Brazil per day starting in October, as the two South American neighbors discuss options for supplying the region's biggest powerhouse.

The deal has not yet been sealed, but energy companies from Brazil, Latin America's largest economy, and Argentina are seeking to reverse the southerly flow of a natural gas pipeline network connecting the three countries amid a regional gas deficit.

Brazil had already said it would need supplies from Argentina, which has the world's second-largest shale gas reserves. Exports from Bolivia, once a prominent producer, have declined and may not be available after 2029, experts say.

Speaking at a press event, YPFB officials said the firm was working to further boost transport volumes and that in the medium-term, YPFB is working on projects that could boost volumes by more than 10 million cubic meters per day.

"As Bolivia is ready to work for a possible import of gas from Vaca (Argentina) to Brazil, in Bolivia we are ready, we have the infrastructure. We are going to show them what infrastructure Bolivia has and how gas from Vaca Muerta could be taken to Brazil through Bolivian pipelines,” said Armin Dorgathen, Bolivian state oil firm YPFB Ceo.

"Vaca Muerta gas has a huge potential. This does not mean that the pipeline they want to build through Paraguay cannot be built, or that it cannot be built through Uruguayana, passing through Uruguay, through Brazil, through Uruguayana," he added.

Paraguay, however, has been pushing a rival bid for a potential $1.5 billion gas pipeline connecting Argentine gas to Brazil. Either project, if realized, would mark a major potential shift in regional energy flows.