Brazil and Argentina Collaborate with YPFB to Transport Natural Gas from Vaca Muerta

Brazil’s Grupo Matrix Energia and Argentina’s TotalEnergies are collaborating with YPFB to transport natural gas from Argentina’s Vaca Muerta formation. The agreement utilizes Bolivia’s transport infrastructure, aiming to strengthen regional energy supply dynamics amid Bolivia’s declining exports. In addition, YPF is merging LNG projects to boost production and position itself in the global market.

Brazil’s Grupo Matrix Energia and Argentina’s TotalEnergies have formalized an agreement with Bolivia’s state-owned energy company, YPFB, to facilitate the transportation of natural gas extracted from Argentina’s Vaca Muerta shale reserves. This collaboration, inked on November 22, aims to leverage Bolivia’s pipeline infrastructure in response to the evolving energy supply landscape of the region. YPFB has emphasized that this deal represents a significant advancement in enabling the flow of Argentine gas to Brazilian markets, thereby enhancing regional energy cooperation.

The backdrop of this agreement sees Bolivia, which previously was a major energy exporter, experiencing a decline in its gas exports. Consequently, both Argentina and Brazil are seeking alternative channels for gas supply. Argentina, known for possessing the world’s second-largest shale gas reserves, is working on expanding its pipeline system and refining the commercial arrangements necessary for the exportation of its gas resources.

The agreement permits YPFB’s affiliated transportation firms to utilize its existing pipeline infrastructure, spanning 1,000 kilometers, to support the transit of gas between Argentina and Brazil. In conjunction with the transportation arrangement, TotalEnergies and Matrix Energia have also established a purchase and sales contract regarding gas supplies.

YPFB has disclosed that TotalEnergies has acquired two permits for the export of natural gas sourced from the Austral and Neuquen Basins into Brazil. Furthermore, there are developments concerning YPF’s liquefied natural gas (LNG) projects as it seeks to merge with Pan American Energy Group and Golar LNG. This strategic alignment is anticipated to increase production outputs and reinforce Argentina’s position within the global LNG market.

Looking ahead, YPF is poised to secure $2 billion in financing for its Vaca Muerta Sur pipeline initiative, which aims to transport an additional 390,000 barrels per day from the shale formation to a coastal terminal in Rio Negro province, Argentina. This initiative is spearheaded by Vaca Muerta Oil Sur, a company under YPF’s control.

The partnership among Brazil, Argentina, and Bolivia reflects significant developments in South America’s energy sector. Previously recognized for its substantial natural gas exports, Bolivia has faced declining production, prompting neighboring countries to seek new energy routes and collaborative strategies. Argentina’s Vaca Muerta formation is critical as it holds some of the largest shale gas reserves globally and has the potential to position Argentina as a prominent gas exporter.

The collaboration between Brazil, Argentina, and Bolivia through YPFB signifies a strategic pivot in energy transportation within South America. As Argentina works to harness its rich shale reserves and establish necessary infrastructures, the partnership aims to facilitate regional energy supply and integration, ultimately enhancing the energy dynamics among the nations involved. This move is particularly pivotal as energy needs in the region evolve against a backdrop of changing market conditions.

Original Source: www.offshore-technology.com