Argentina agrees with Brazil on winter electricity guarantee

RIO DE JANEIRO, BRAZIL – Argentina agreed Friday to allow Brazil to guarantee its energy security by supplying the country with electricity as needed between May and September, the Argentine Economy Ministry said in a statement.

Argentine Economy Minister Martín Guzmán met Friday in São Paulo with Brazilian Minister of Mines and Energy Bento Albuquerque, who assured that Brazil will supply Argentina with the amount of electricity it needs between May and September, according to the Argentine ministry.

“Brazil will guarantee Argentina’s energy security in the winter,” Guzmán said in the statement, pointing out that the greater supply will allow Argentina to free up gas for other uses.

“What we have achieved with Brazil and Bolivia gives Argentina greater security and tranquility in the energy sector,” Guzmán stressed at the end of the bilateral meeting, which he called “excellent” because it set the integration agenda for the future of both countries.

As agreed Thursday in Buenos Aires by the presidents of Bolivia, Luis Arce, and Argentina, Alberto Fernández, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) will supply 14 million cubic meters per day of firm gas during the winter months, with Argentina having priority for a total of up to 18 million cubic meters per day for the period from May to September 2022, depending on availability.

Argentina has growing natural gas production thanks to the development of the unconventional Vaca Muerta formation.

However, the volumes produced, which are difficult to transport due to limited pipeline capacity, are not sufficient to fully meet domestic demand and gas exports to Chile.

As a result, Argentina has to import natural gas from Bolivia and liquefied natural gas from other markets, the latter being much more expensive than Bolivian gas and prices have risen sharply since Russia’s invasion of Ukraine.

Guzmán was scheduled to meet with his Economy Minister, Paulo Guedes, in Brasilia this Friday.

WITH BUSINESSMEN

Along with Argentina’s ambassador to Brazil, Daniel Scioli, Guzmán also met Friday morning with more than 200 Brazilian businessmen who have invested or are interested in investing in Argentina.

Earlier in the day, before the presentation in the auditorium with businessmen, there was also a meeting with representatives of the Federation of Industries of the State of São Paulo (FIESP).