Brazil, Argentina sign MoU for Vaca Muerta gas exports

BRASíLIA, November 19, 2024 – Brazil and Argentina have signed an MoU to facilitate the export of Argentine natural gas to Brazilian markets, Brazil’s Ministry of Mines and Energy announced on Monday.

Under the agreement, the countries will form a working group to identify the measures required for gas exports to be viable and study the development of export infrastructure, primarily emphasising Argentina’s Vaca Muerta formation.

The initiative envisions gas exports of 2 mcm (70.6 mcf) per day in the short term, with volumes gradually increasing to reach 30 mcm (1.1 bcf) per day in 2030. The countries will prioritise the use of gas transportation infrastructure already in place, seeking to achieve Argentine gas exports in the shortest timeframe and at the lowest possible cost.

Among the export routes under consideration are the Gasbol pipeline linking Bolivia and Brazil, routes through Paraguay and Uruguay, a direct link to the Brazilian state of Rio Grande do Sul and the shipment of LNG cargoes. The Brazilian ministry mentioned the possible involvement of French oil major TotalEnergies and independents Pluspetrol and Pan American Energy.

“By importing gas from Vaca Muerta, we are strengthening the development of the fertiliser, glass, ceramics, petrochemical and many other industries that bring economic development to Brazil,” said Alexandre Silveira, Brazil’s minister of mines and energy.

The agreement has a duration of 18 months and includes the possibility of extensions.

Photo courtesy Argentina.gob.ar

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