Brazil negotiates construction of gas pipeline with Argentina

Brazil is negotiating with Argentina to build a billion-dollar pipeline from Vaca Muerta’s shale gas reserves, President Jair Bolsonaro said on Thursday.

Speaking to supporters on social networks, Bolsonaro said that the gas pipeline in Argentina is one of the options his government is studying to reduce the price of gas in Brazil. “We are in negotiations with Argentina, with Vaca Muerta gas. It will happen one day because it is not easy to start importing gas, we need gas pipelines (sic)”, said Bolsonaro in his weekly live broadcast.

Last year, the Argentine ambassador to Brasília proposed the construction of the gas pipeline in meetings with Bolsonaro and the minister of Mines and Energy of Brazil, Bento Albuquerque. Argentina is proposing a pipeline with 1430 km of shale gas reserves in the province of Neuquen next to the border with Brazil in Uruguaiana and another 600 km from there to Porto Alegre (RS), connecting to the gas distribution network from southern Brazil.

Bolsonaro did not say how the project would be financed. Costs are estimated at US$3.7 billion for Argentina and another US$1.2 billion for the Brazilian stretch.

Source: Valor Econômico

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https://valor.globo.com/brasil/noticia/2021/08/20/brasil-negocia-construo-de-gasoduto-com-a-argentina.ghtml

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