Latin America Advisor

Energy Advisor

A Publication of The Dialogue

Can Argentine Gas Balance Brazil’s Dwindling Supply?

Energy firms are exploring the possibility of bringing gas from Argentina’s Vaca Muerta shale formation northward to Brazil by reversing a Bolivian pipeline. // File Photo: Argentine Government.

Argentine and Brazilian energy firms have begun talks to explore the possibility of reversing the southward flow of a Bolivian gas pipeline in order to bring gas north from Argentina to Brazil, where supplies are dwindling. Brazil is increasingly struggling against the volatile prices of liquefied natural gas, and reversing the gas pipeline could tap into Argentina’s massive Vaca Muerta shale formation, bringing that gas northward to balance Brazil’s supplies. How severely are gas shortages affecting economies such as Brazil’s, and how badly does the region need a solution? Which nations and companies stand to benefit the most from the plan to reverse the gas pipeline, and which economies or industries might be negatively affected? What are the biggest hurdles to the plan to bring Argentine gas northward to Brazil, and how likely are they to be overcome?

Marcos Patrón Costas, partner at Allende & Brea: “The gas shortages represent a significant risk for economies such as Brazil and other countries in Latin America that need to secure the supply of natural gas to avoid rationing of supply to their electricity generators, industries and homes. The reversal of the Bolivia—Argentina gas pipeline is a measure taken in the right direction in order for Brazil to secure its gas supply since the production of natural gas in the Vaca Muerta basin is constantly increasing, which will help Brazil to secure its natural gas supply and lower the cost of supplies by reducing its liquefied natural gas (LNG) imports. Argentina and the main players in…”

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About the Energy Advisor

A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.


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Gene Kuleta

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E. gkuleta@thedialogue.org

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