Brazil and Argentina, recognizing the potential to strengthen their energy sectors, have embarked on a collaborative initiative to enhance the infrastructure for natural gas exports. The focus of their agreement is the development of pathways to facilitate the transport of natural gas from Argentina's vast Vaca Muerta shale formation to Brazil, according to Reuters.
Memorandum of Understanding (MOU): Brazil and Argentina signed an MOU to explore the development of infrastructure for exporting natural gas from Argentina to Brazil.
Focus on Vaca Muerta: The project focuses on utilizing gas from Argentina 's Vaca Muerta, one of the world's largest shale gas reserves.
Working Group: A working group will be established to identify necessary measures to facilitate gas supply from Argentina to Brazil.
Potential Routes: The group will consider various routes for transporting gas, including reversing the Bolivian gas pipeline and other routes through Paraguay and Uruguay.
Direct Connection: The possibility of a direct connection at Uruguaiana, a Brazilian city on the border with Argentina, will also be explored.
Brazil’s Gas Demand: Brazil, being Latin America’s largest crude producer, faces a domestic gas shortfall, making increased supplies a priority.
Energy Export Goals: With Vaca Muerta’s reserves, Argentina, led by its state oil company YPF, aims to become a significant energy exporter.
Argentina has a developing network of oil and gas pipelines that connect to various countries, primarily focusing on enhancing domestic supply and facilitating exports.
Major Pipelines in Argentina
Northern Natural Gas Pipeline:
Origin: Neuquén province (home to the Vaca Muerta shale formation).
Purpose: This pipeline is designed to supply natural gas to northern provinces, replacing imports from Bolivia and potentially allowing for future exports.
Connections: Future plans include exporting gas to Bolivia, Chile, and Brazil.
Néstor Kirchner Gas Pipeline:
Length: 1,040 km (two phases).
Function: It transports gas from Vaca Muerta to major population centers, including Buenos Aires.
Status: The first phase is operational, with plans for increased capacity and future connections aimed at exporting to neighboring countries 47.
Vaca Muerta Sur Pipeline:
Investment: Approximately $2.5 billion.
Goal: To facilitate crude oil exports from the Vaca Muerta formation to an export terminal at Punta Colorada.
Connections: This pipeline aims for future exports to countries including Chile and possibly others via maritime routes.
Argentina GNL Gas Pipeline (Proposed):
Route: Planned to run from Vaca Muerta to a new GNL export terminal at Punta Colorada.
Purpose: To transport liquefied natural gas for export, enhancing Argentina's role in global energy markets .
These connections are crucial as Argentina seeks to leverage its vast shale resources in Vaca Muerta, which holds significant potential for both domestic consumption and international exports.
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