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Argentine Gas May Invade Brazil With Historic Price Below $10 Per Million BTU, According to TotalEnergies

Written by Caio Aviz
Published on 16/09/2025 at 21:37
Bandeiras do Brasil e da Argentina com tanque de gás natural simbolizando exportação a menos de US$10 por milhão de BTU segundo TotalEnergies
Tanque de gás natural diante das bandeiras do Brasil e da Argentina representa o acordo projetado pela TotalEnergies para preços competitivos abaixo de US$10 por milhão de BTU
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Investment And Competitiveness In The Energy Market

TotalEnergies recently stated that natural gas from Argentina could reach Brazil for less than US$10 per million BTU.

However, to achieve this competitive level, Argentina will need to increase investments in infrastructure.
Additionally, it will be necessary to accept lower transportation tariffs for neighboring countries.

According to Sergio Mengoni, newly appointed director of TotalEnergies in Brazil, the company is focused on enabling continuous supply contracts for gas in the Brazilian market.

Pilot Export And Initial Results From Vaca Muerta

In April 2025, TotalEnergies conducted the first gas export from the Vaca Muerta formation, located in western Argentina, to Matrix Energy in São Paulo.

The transport occurred via a pipeline coming from Bolivia. The process took place in a pilot test of 500,000 cubic meters per day for 10 days.

Mengoni emphasized that the current biggest challenge is to transform one-off operations into firm long-term contracts. He stated that this is essential to ensure regional predictability.

Infrastructure Challenges And Transportation Tariffs

According to Mengoni, the next steps involve expanding the infrastructure to bring gas from Vaca Muerta to northern Argentina.
Only then will it be possible to use it for export.

Additionally, it will be necessary to negotiate reductions in transportation tariffs in countries where the pipeline is already amortized.
This measure is considered essential for greater competitiveness.

Competitive Price Against Liquefied Natural Gas

The executive emphasized that, to compete in Brazil, the price of Argentine gas needs to be below US$10 per million BTU.

Higher values would lose ground against imports of liquefied natural gas (LNG).
The final cost is the necessary breakeven point to attract Brazilian buyers.

This balance is even more important given the current scenario of seeking affordable energy alternatives. Additionally, it increases supply security in the Brazilian market.

Commercial Interests Between Brazil And Argentina

Mengoni highlighted that many Brazilian traders have been seeking direct negotiations with TotalEnergies to explore the potential for continuous supply between the countries.

He pointed out that the Brazilian market represents a significant opportunity, both for Argentine producers from Vaca Muerta and for consumers in Brazil.

Energy integration between the countries is seen as a strategic alternative to reduce costs. Furthermore, it strengthens supply security in the sector.

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Caio Aviz

Escrevo sobre o mercado offshore, petróleo e gás, vagas de emprego, energias renováveis, mineração, economia, inovação e curiosidades, tecnologia, geopolítica, governo, entre outros temas. Buscando sempre atualizações diárias e assuntos relevantes, exponho um conteúdo rico, considerável e significativo. Para sugestões de pauta e feedbacks, faça contato no e-mail: avizzcaio12@gmail.com.

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