Milei's Team Maintains Interest in Gas Pipeline Project for Brazil

Milei’s Team Maintains Interest in Gas Pipeline Project for Brazil

Written by Paulo Nogueira

Published on 12/12/2023 at 13:52

Tomas Cuesta/Getty Images – Todos os direitos: CNN Brasil

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Strategic Gas Pipeline Project from Vaca Muerta to Uruguaiana, RS Aims to Integrate Energy into Brazil at Lower Prices. Start in 2025.

The Brazilian government was informed, during contacts with the circle of the elected president of Argentina, Javier Milei, about the interest in maintaining a strategic project for the management of Peronist Alberto Fernández: the construction of a gas pipeline that will transport natural gas from the Vaca Muerta megasource to Uruguaiana, in Rio Grande do Sul.

This interest was communicated by Milei’s team in conversations with the Brazilian embassy in Buenos Aires, days before the second round. The information was relayed to Diana Mondino, pointed out as a possible future Minister of Foreign Affairs, reinforcing the importance of the pipeline for both parties.

The Pipeline Under Bidding by the Argentine Government

The pipeline project between the Vaca Muerta megasource, in the Argentine west, and the border with Rio Grande do Sul is currently under bidding by the Argentine government. If the schedule is followed, there is a possibility that the project will be completed between late 2024 and the beginning of 2025.

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Strategic Project for Energy Integration

The project considered strategic would bring to Uruguaiana nearly the same amount of gas as the Brazil-Bolivia Gas Pipeline (Gasbol), with lower prices compared to those practiced in the Brazilian market. From the city in Rio Grande do Sul, the energy input could be transported to São Paulo, supplying the industry in the Southeast region.

The Argentine president had been requesting financing from the National Bank for Economic and Social Development (BNDES) for the steel pipes that will be used in the civil engineering works of the pipeline.

Energy Integration Between Argentina and Brazil

The project is seen by the current Argentine government, as well as by many members of the Brazilian diplomacy, as a key piece in the energy integration between the main countries of the Mercosur.

Source: CNN Brazil

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