Argentina Begins Natural Gas Exports to Brazil via Bolivia

Argentina has begun exporting natural gas to Brazil through Bolivia’s YPFB infrastructure, leveraging gas from the Vaca Muerta field. The initiative stems from a tripartite agreement and aims to meet rising industrial demands in Brazil while stabilizing fuel supplies in Bolivia.

Argentina has commenced the export of natural gas to Brazil through Bolivia’s Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) infrastructure. This endeavor, reported on Tuesday, uses TotalEnergies’ gas sourced from the Vaca Muerta field in Neuquén, utilizing Argentina’s TGN and TGS pipelines to Salta, and subsequently via Bolivia’s YPFB network to Brazil, following a tripartite agreement concluded in late 2024.

The Brazil-Bolivia Gas Pipeline, known as Gasbol, currently has a capacity of 30 million cubic meters per day but only operates at 10 million. Plans exist to ramp up to the full capacity over the next five years to satisfy Brazil’s industrial demands. Bolivian officials noted the transition from exporting to leasing pipelines will bolster the country’s income and cement its status as a vital energy conduit within the Southern Cone.

This agreement has revitalized Argentina’s energy sector, heralding prospects for future hydrocarbon investments. The initial export volume is set at 2 million cubic meters of gas per day. Concurrently, YPFB President Armin Dorgathen indicated that the fuel supplies in Bolivia’s main cities have normalized, eliminating long queues at gas stations. YPFB presently distributes over 7.7 million liters of diesel and 8 million liters of gasoline daily, with additional shipments arriving at Chile’s Arica port.

Dorgathen refuted speculation about his fleeing the country or the overpricing of fuel imports, asserting that prices are in line with international standards. He defended Bolivia’s fuel subsidy and announced an upcoming forum aimed at elucidating regional fuel pricing. He also noted that gas not exported to Argentina would be redirected to Brazil, where the market demand and pricing are more favorable.

As fuel supply stabilizes in Bolivia, Dorgathen reported a significant decrease in queues for gasoline. “In Santa Cruz and La Paz, the queues to fill up gasoline have practically disappeared, which shows that we are managing to stabilize the supply,” he stated. Further, he mentioned that with two additional ships arriving at Arica and five already poised to unload, the supply chain remains robust. Dorgathen firmly dismissed rumors about his alleged fleeing, highlighting the ongoing operations in Bolivia.

In summary, Argentina has successfully started exporting natural gas to Brazil via Bolivia, marking a significant development in the region’s energy dynamics. The project, facilitated by YPFB’s infrastructure and strategic agreements, aims to meet Brazil’s energy demands while also stabilizing fuel supplies within Bolivia. This initiative not only enhances bilateral energy cooperation but also underscores the economic viability of Bolivia’s role in regional energy markets.

Original Source: en.mercopress.com