The governments of Argentina and Brazil signed an agreement to export natural gas from Vaca Muerta to Brazil. By the year 2030, the deal is expected to deliver 30 million cubic tons per day to Brazil, the same amount they used to export from Bolivia.
Argentine Economy Minister Luis Caputo and Brazilian Mining and Energy Minister Alexandre Silveira signed the memorandum in a bilateral meeting on the sidelines of the G20 summit currently taking place in Rio de Janeiro. The document aims to set the foundations for the required infrastructure to export gas from Vaca Muerta to Brazil.
Speaking to Brazilian outlet O Globo, Silveira praised the deal with Argentina, calling it “an unequivocal demonstration that, despite [everyone’s] political views, there must be permanent dialogue.”
Argentina to begin exporting gas to Brazil in 2025
Starting next year, Argentina will export 2 million cubic tons a day. Representatives from both countries are studying the possibility of progressively raising it up to a daily delivery of 30 million cubic tons of natural gas in 5 years.
The gas is expected to be sent through the Bolivia-Argentina pipeline, which was originally intended to import gas from Bolivia. The infrastructure will have to be modified in order for the gas to go from Vaca Muerta to Bolivia and then to Brazil through the Gasbol pipeline, which was built in the 1990s and connects both countries.
Other possible connections are from Argentina to the Brazilian city of Rio Grande do Sul through the intermediate port of Uruguaiana (Brazil); to Mato Grosso do Sul via Paraguay; and to Rio Grande do Sul through Uruguay.
Brazilian Minister Silveira highlighted the importance of the deal in a post on X. “We want to increase gas supply in Brazil in order to lower prices. We need to treat gas as a transitional energy, increase volume to lower prices and reindustrialize Brazil, thus generating more opportunities for our people,” he wrote.
The deal comes at a time in which all eyes are on the relationship between Presidents Lula da Silva and Javier Milei. The two leaders met for the first time in person at the G20 Summit, and the tension between them was palpable. They greeted each other with a cold handshake before taking the standard picture together with Lula’s wife Rosangela da Silva and Milei’s sister Karina.