Argentina Initiates Natural Gas Exports to Brazil Through Bolivia

Argentina has begun exporting natural gas to Brazil through Bolivia for the first time, utilizing YPFB’s infrastructure as part of a three-way agreement. The Gasbol pipeline expansion aims to support Brazil’s industrial demand. YPFB has also stabilized fuel supply in major Bolivian cities, quelling concerns about fuel prices and shortages, reinforcing Bolivia’s energy partnership with its neighbors.

Argentina has commenced its first exports of natural gas to Brazil through Bolivia’s Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). The gas originating from the Vaca Muerta field in Neuquén province is transported via Argentina’s TGN and TGS pipelines to Salta, and subsequently through Bolivia’s network to Brazil. This operation is based on a tripartite agreement established at the end of 2024.

The Brazil-Bolivia Gas Pipeline, known as Gasbol, which currently operates at 10 million cubic meters per day, aims to expand its capacity to 30 million cubic meters in five years to satisfy Brazil’s growing industrial needs. This change indicates Bolivia’s strategic shift from merely exporting natural gas to utilizing its pipelines to generate revenue, enhancing its position as an essential energy conduit in the region.

This arrangement is expected to revitalize Argentina’s energy sector, signaling potential future investments in hydrocarbons. The initial supply is projected to be 2 million cubic meters of gas daily.

In parallel, YPFB President Armin Dorgathen announced a stabilization in fuel supply across major Bolivian cities such as Santa Cruz, La Paz, and Cochabamba. The company now distributes more than 7.7 million liters of diesel and 8 million liters of gasoline daily, with additional supplies incoming to the Chilean port of Arica, leading to reduced consumer queuing at gas stations.

Dorgathen addressed allegations concerning fuel pricing and potential migration from the country, asserting that fuel prices are consistent with international standards. He reiterated the rationale behind Bolivia’s fuel subsidy and mentioned a forthcoming forum dedicated to elucidating regional fuel pricing dynamics. Additionally, he noted that previously exported gas to Argentina will now cater to Brazil, where market conditions are more favorable.

In Bolivia’s primary urban areas, fuel supply has normalized significantly. Dorgathen remarked, “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.” Furthermore, he refuted claims of flights from Bolivia, stating, “We continue working in Bolivia.”

In summary, Argentina’s initiation of natural gas exports to Brazil through Bolivia marks a significant milestone in regional energy collaboration. The expansion of the Brazil-Bolivia Gas Pipeline, combined with stabilization efforts in fuel supply by YPFB, illustrates a strategic shift towards bolstering energy infrastructure and addressing market demands. This development not only supports Argentina’s energy sector but also reinforces Bolivia’s role as a key energy facilitator in South America.

Original Source: en.mercopress.com