Argentina Begins Natural Gas Exports to Brazil via Bolivia

Argentina has begun exporting natural gas to Brazil through Bolivia via a new agreement. The Gasbol pipeline operates at 10 million cubic meters but aims to reach a capacity of 30 million. Fuel supplies in Bolivia have stabilized, enhancing local distribution efficiency. YPFB’s president clarified fuel pricing and current operations amidst recent rumors.

Argentina has commenced the exportation of natural gas to Brazil through Bolivia’s Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) infrastructure. This marks the first instance of Argentina selling gas to Brazil under a three-way agreement established in late 2024. TotalEnergies is facilitating these gas sales from the Vaca Muerta field in Neuquén province, utilizing Argentina’s TGN and TGS pipelines before routing through Bolivia to Brazil.

The Brazil-Bolivia Gas Pipeline, or Gasbol, has an operational capacity of 30 million cubic meters per day. Presently, it operates at 10 million cubic meters, with plans to reach full capacity in five years to satisfy Brazil’s industrial demands. This shift not only enables Bolivia to earn income through pipeline leasing but also solidifies its critical role in regional energy distribution.

In addition, YPFB President Armin Dorgathen announced that fuel supply levels in Bolivia’s major cities, such as Santa Cruz, La Paz, and Cochabamba, have stabilized, alleviating long lines at gas stations. YPFB currently manages over 7.7 million liters of diesel and 8 million liters of gasoline distribution each day. The company continues to receive shipments at the port of Arica in Chile, enhancing its supply chain.

Dorgathen directly addressed rumors about fleeing the country or inflating fuel prices. He confirmed that rates are consistent with international benchmarks, directly countering any allegations. He also reiterated the importance of Bolivia’s fuel subsidy, announcing plans for a forum to analyze regional fuel pricing.

Dorgathen affirmed that gas previously exported to Argentina will now be redirected to Brazil, where demand is increasing and prices are more competitive. He emphasized the positive impact of increased fuel supply on local communities, stating that queue lengths for gasoline have been significantly reduced, from 100 vehicles to just 30 in some regions. He assured continued operations in Bolivia, refuting any claims of personal relocation and highlighting ongoing efforts to provide clarity on market dynamics and trading processes.

In summary, Argentina’s inaugural export of natural gas to Brazil, facilitated through Bolivia’s pipeline network, underscores a pivotal development in regional energy collaboration. Bolivia’s fuel distribution has stabilized, supporting local economies while the market adapts to shifts in demand. As both nations look to enhance energy independence, this cooperative agreement may pave the way for future investments in the energy sector.

Original Source: en.mercopress.com