Companies from Vaca Muerta, Argentina, Advance in Gas Exports to Brazil, Particularly São Paulo, Replacing the Decline in Bolivian Supply and Strengthening Energy Security.
The exports of natural gas from the Vaca Muerta formation in Argentina have gained momentum and promise to significantly alter the Brazilian energy landscape, especially in São Paulo. Major energy companies, such as TotalEnergies, Gas Cono Sur, Tecpetrol, and Pluspetrol, have signed at least nine contracts for the supply of over 10.5 million cubic meters per day to Brazil, according to industry sources. The trend is towards growth, with five more orders under consideration.
The Argentine strategy includes utilizing existing infrastructure, prioritizing the Argentina-Bolivia-Brazil route, which will transport Vaca Muerta gas directly to Brazilian territory, alleviating Brazil’s dependence on Bolivian gas — whose production is facing a constant decline in reserves.
Bolivian Reserves in Accelerated Decline Drive Route Change
The decision to replace Bolivian gas is not coincidental. Recent data from the U.S. consultancy Ryder Scott Company reveals that the proven reserves of Bolivian natural gas reached 4.04 TCF (trillion cubic feet) in December 2022.
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Even when summing the categories “Proven + Probable + Possible,” the volume did not exceed 5.15 TCF.
In December 2023, the proven reserves increased to 4.48 TCF, with a maximum potential of 5.24 TCF, considering the most optimistic scenario. Nevertheless, experts and local authorities criticize the lack of transparency in the data.
The 2024 certification, which was supposed to be available since March, has not yet been presented by YPFB (Yacimientos Petrolíferos Fiscales Bolivianos), which increases uncertainty.
Vaca Muerta Eyes New Markets While Awaiting Infrastructure for LNG
In light of this scenario, Vaca Muerta gas emerges as a strategic alternative to supply Brazil, especially while the projects for its export as Liquefied Natural Gas (LNG) are still in the planning stages.
The Neuquén Basin, where the Vaca Muerta geological formation is located, has been attracting increasing interest from Brazilian buyers.
“We are in search of a firm supply, as Bolivia can no longer replenish the depleted volumes, and we are at the mercy of imported LNG to meet our market’s needs,” stated an expert interviewed by the Petronotícias portal.
Contracts Already Signed Focus on the Southeast and Utilize Bolivian Network
The operations already have official approval. The Argentine government has authorized four exports destined for Brazil, with a special focus on the São Paulo region, which concentrates a large part of the national demand for natural gas.
The subsidiary Total Austral, linked to the French TotalEnergies, signed a contract with MGAS Comercializadora to supply up to 1.5 million cubic meters per day, from the San Roque, Aguada Pichana Este, and Rincón de la Ceniza fields, all located in Vaca Muerta.
Besides MGAS, other Brazilian traders involved in the contracts include MTX Comercializadora, Edge Comercialização, and Gas Bridge.
Logistical and Tariff Obstacles Still Challenge Expansion
Despite the advances, the export of Argentine gas faces technical and regulatory hurdles.
The Argentine state-owned company Enarsa has not yet completed the installation of a bidirectional meter at the Gasoducto de Integración Juana Azurduy (Gija), essential for the reverse transport of gas to Bolivia. Additionally, tariff issues are still pending approval.
The expectation is that the transportation cost will be around US$ 9 per million BTU. “If it reaches Gasbol at that price, I think it’s cheap. But we need to know if that price is at the entrance to Bolivia or in SP,” ponders an industry analyst.
Expectations for the Gas Market in São Paulo
Vaca Muerta gas is expected to gain prominence in São Paulo, Brazil’s largest consumer market, which suffers from fluctuations in Bolivian supply.
Diversification of routes and suppliers is seen as an urgent measure to ensure stability and energy competitiveness, both for the industrial sector and residential consumers.
The entry of Argentine gas into the Brazilian market not only reinforces the country’s energy security but also opens new bilateral business opportunities, consolidating Vaca Muerta’s role as one of the main production hubs in South America.
With information from Petronotícias.

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