Brazil development bank to support exports linked to Vaca Muerta pipeline

Brazil has announced its support for the construction of the second section of a gas pipeline, connecting Argentina’s Patagonian basin of Vaca Muerta to the state of Rio Grande do Sul.

This commitment was made in a joint statement following a bilateral meeting between Presidents Luiz Inácio Lula da Silva and Alberto Fernández in Brasília. The meeting took place last Tuesday (30) during the South American leaders’ summit.

According to the statement, negotiations on financing strategic projects have progressed, including potential support from Brazil’s National Bank for Economic and Social Development (Bndes) for the export of Brazilian steel tubes and plates required for the pipeline’s second phase. In addition, the statement asserts that legal obstacles to Bndes involvement have been resolved, allowing Brazil to advance with financing arrangements for the export of Brazilian products.

The gas pipeline holds significant importance for Argentina’s development as it will enhance the transportation capacity of gas from Vaca Muerta, the second-largest reserve of unconventional gas globally. This infrastructure project is expected to replace liquefied natural gas (LNG) imports, resulting in immediate savings of over US$ 2.5 billion.

From Brazil’s perspective, the pipeline project is crucial in compensating for the depletion of Bolivian reserves that currently serve the industry in Rio Grande do Sul. President Fernández is scheduled to make a state visit to Brazil on June 26th.

Source: Terra
To read the original text, click on: https://www.terra.com.br/noticias/mundo/bndes-vai-financiar-exportacoes-para-gasoduto-de-vaca-muerta,2e20f6c4232a4d8d0afc4745cda3b5ce4ag9a42r.html

Sharing is caring!