YPFB Approves Argentina’s Gas Supply to Brazil via Bolivia: A Strategic Energy Agreement

YPFB Approves Gas Pumping from Argentina to Brazil via Bolivia

On November 27, 2024, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), Bolivia’s state-run oil company, announced that it will allow Argentina to pump gas to Brazil through its pipeline. This decision was shared by YPFB President Armin Dorgathen during a hydrocarbon forum in Santa Cruz de la Sierra.

The agreement involves Argentina’s Total Energies and Brazil’s Grupo Matrix Energía. Dorgathen stated that this collaboration will enhance the flow of natural gas and strengthen regional cooperation. The gas will originate from Argentina’s Vaca Muerta formation and move through Bolivia’s Integrated Transportation System (SIT). This system includes 1,000 kilometers of pipelines and compression stations.

YPFB emphasized that this agreement marks a significant step in supplying natural gas to Brazil’s consumer market, following previous discussions at the G20 Summit in Rio de Janeiro. The pumping is expected to begin next year, with plans to reach a volume of 30 million cubic meters per day by 2030, matching Brazil’s previous gas purchases from Bolivia.

In addition to the existing Bolivia-Argentina pipeline, there are plans to explore other routes, including potential connections via Uruguaiana into Rio Grande do Sul, Brazil. As Brazil relies heavily on hydroelectric power—currently affected by severe drought—affordable gas from Argentina becomes crucial.

The development of gas sales is anticipated to positively impact trade relations between Argentina and Brazil, shifting the trade balance favorably for both nations.