Paraguay is making progress in negotiations with energy companies and senior officials from Argentina and Brazil over a potential $1.5 billion gas pipeline that would connect the three countries . The initiative of this “Paraguayan gas pipeline” seeks to supplant a competitive Bolivian project that contemplates reusing existing gas pipelines to transport gas from Argentina to Brazil.
June: Key month for the new Paraguayan gas pipeline
“The signing of a memorandum of understanding (on the gas pipeline) at the presidential level between the three countries is expected by June,” Mauricio Bejarano, Paraguay’s vice minister of Mines and Energy, told Reuters. Bejarano added that the project has received a favorable reception in principle.
On the other hand, Rodrigo Maluff, vice minister of investments of Paraguay, mentioned that, since the gas production In Bolivia is declining and Brazil needs to look for new suppliers, the option of obtaining gas from the prosperous Vaca Muerta shale region in Argentina through the Paraguayan Chaco is gaining strength.
The project would require an estimated investment of between $1.2 and $1.5 billion, partially financed by the private sector. In addition, officials and companies from Argentina and Brazil have maintained dialogues with Bolivia since last year, considering that this could be a faster and cheaper way to transport gas from Vaca Muerta to the north of the region.
Paraguay seeks energy investments in Brazil
In recent months, Paraguayan officials have sought to attract investors in São Paulo and have met with Brazil’s energy minister in Asunción, as well as Argentine officials. According to Reuters, companies such as Tecpetrol and Pluspetrol , which did not want to comment, participated in these latest conversations. Paraguayan officials indicated that the initial daily capacity of the gas pipeline would be 15 million cubic meters in its first phase.
In addition, Alexandre Silveira, Brazilian Minister of Mines and Energy, who visited Asunción in April, expressed to Reuters his awareness of Paraguay’s intention and showed his support, although he noted that more studies are necessary. “We agreed to organize another meeting with the private sector to better analyze the feasibility of the project“he declared.
Victorio Oxilia, energy expert and professor at the National University of Asunción , stressed the importance of the Brazilian market for the viability of the project. According to Oxilia, without the demand from Brazil, the project would not be feasible. This highlights the strategic importance of the decisions that Brazil makes regarding the project.
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Source: mase.lmneuquen
Photo: Shutterstock
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