Vaca Muerta Gas Pipeline in Argentina Nears Completion, With Lack of Investment from Brazil As Only Obstacle

Built In Argentina, The Vaca Muerta Pipeline Has A Great Impact On The Economy Of The Country And Promises To Strengthen The Oil And Gas Sector Of The Region Even More. The Process Is In Its Final Stages And One Of The Obstacles Is The Lack Of Investment Promised By Brazil, Which Plans To Contribute To This Historical Moment For A Neighboring Country.

With 573 kilometers, the Vaca Muerta pipeline will be a major milestone for Argentina once the construction is completed. The construction was made to alleviate the difficulties faced by the country regarding gas production and, thus, strengthen the economy of the population. However, for the processes to be duly completed, financial investment is needed, something that has been promised by the Brazilian government. So far, the competent ministries have not made any statements on the subject.

The Expectation Is That The Vaca Muerta Pipeline Will Be Ready By June, The Period Of Highest Demand For Gas In Argentina

As June marks the beginning of winter in Argentine soil, the demand for gas usually reaches its peak, resulting in a great opportunity for the country to generate more revenue.

Therefore, the expectation of the entities involved is that the construction will be finalized by June and, thus, the demand can be satisfied.

One of the obstacles, as mentioned earlier, is the lack of investment from Brazilian authorities.

According to announcements, the government would help, through the BNDES, the National Bank for Economic and Social Development, in the construction and completion of the pipeline. As the deadline is tight, the expectation is that the competent bodies will speak out about what will be done next. This is the case of Marina Silva, for example, Minister of the Environment, who may update the population on Brazil’s stance regarding the pipeline.

It is important for Argentina to gain strength in the gas production sector to further enhance South America’s potential in the area. With the Ukraine war, what was considered the global gas market has been completely reshaped, allowing countries like Brazil and Guyana the chance to show what is being done in this part of the hemisphere.

The Vaca Muerta pipeline would further strengthen this status, so Brazil’s support through investment can bring advantages to South America as a whole.

Lula Comments On BNDES Financing For The Pipeline In Argentina

With The Vaca Muerta Pipeline, Gas Production In Argentina Could Increase Considerably, In Addition To Exporting To Other Countries

According to previous data, during the Argentine winter of 2022, natural gas production reached the milestone of 140 million cubic meters produced per day. Considering the previous scenario, the Vaca Muerta pipeline would act as a complement, reinforcing the number by more than 20 million.

With this, Argentina would be able to export gas to Brazil overland and, through LNG (liquefied natural gas), other countries could receive the cargo via the sea.

In addition to the positive gas scenario, the reality of oil in Argentina also tends to improve, considering that the capacity of the material is expected to double, according to the responsible companies.

In numerical terms, this means that some oil drillers could reach US$ 30 per barrel, standing face to face with major powers in the segment, such as the United States.

Therefore, the Vaca Muerta pipeline is so important for Argentina and for the economy of South America as a whole. The expectation is that some positioning from Brazil regarding the promised investment will be announced soon.