First Shipment from Vaca Muerta
TotalEnergies successfully exported gas for the first time from Argentina’s Vaca Muerta formation to Matrix Energy in São Paulo, Brazil, through a Bolivian pipeline, sources told Reuters.
Details of the Export
- The shipment consisted of approximately 500,000 cubic meters of gas.
- It was carried out through an interruptible contract using the reversed Argentine Northern Gas Pipeline and Bolivian infrastructure.
Long-Term Agreement Negotiations
Companies from Bolivia, Argentina, and Brazil negotiated over a year to secure a long-term route for Argentine gas to reach one of Latin America’s major gas markets: Brazil.
Bolivian Concerns Addressed
Initially, Bolivia was hesitant about charging a toll fee for pipeline use. However, negotiations improved, allowing them to buy gas from Argentina and resell it in Brazil.
Infrastructure Utilization
This infrastructure has historically transported key gas supplies to both Brazil and Argentina. As Bolivia’s production declined, so did its exports. The reversed Northern Gas Pipeline now enables the export of gas from Vaca Muerta, the world’s second-largest unconventional gas reserve.
President Lula da Silva’s Priority
This development marks a win for Brazilian President Luiz Inácio Lula da Silva, who aims to provide cheaper gas to his country’s industry. If exports continue, it will also benefit Argentina, whose gas production is growing under market-friendly policies of President Javier Milei, opening a new revenue source for the country previously facing an energy trade balance deficit.
Operational Agreement
Matrix stated that this innovative operation ensures the logistical route’s technical feasibility through interconnections along the supply chain. It results from import agreements between Matrix Energy and TotalEnergies, along with a transportation service agreement between Matrix Energy and Bolivia’s state company YPFB.
YPFB’s Response
At the time of this report, YPFB had not responded to Reuters’ request for comments on new exports via Bolivian pipelines.
