Argentina and Paraguay Plan Direct Gas Pipeline to Brazil, Bypassing Bolivia

Argentina and Paraguay are working together on a plan to build a new gas pipeline that would send natural gas from Argentina’s Vaca Muerta shale fields directly to Brazil, passing through Paraguay.

This project, announced at the Mercosur summit in July 2025, aims to avoid sending Argentine gas through Bolivia, which has become less reliable due to falling gas production and ongoing political and economic instability.

The proposed pipeline would be about 1,050 kilometers long: 110 kilometers in Argentina, 530 in Paraguay, and 410 in Brazil. The project’s estimated cost is between $1.2 and $2 billion, and private companies are expected to help fund it.

The pipeline would connect to Brazil’s existing Gasbol network in Mato Grosso do Sul, making it easier for Brazil to access large volumes of Argentine gas.

Argentina’s Vaca Muerta is one of the world’s largest shale gas reserves. The new pipeline could start with a capacity of 15 million cubic meters per day and potentially double that by 2030.

This would match the amount of gas Brazil used to buy from Bolivia at its peak. Paraguay, which has seen its own energy use jump by nearly 20% in the past year, would also benefit by getting more energy options beyond hydroelectric power.

Currently, some Argentine gas already reaches Brazil using Bolivia’s pipelines. This system works by sending gas from Argentina into Bolivia and then on to Brazil through the old Gasbol pipeline.

New Paraguay Pipeline Could Boost Regional Energy Security

Bolivia now acts only as a transit country and charges fees for the use of its pipelines. However, this route depends on Bolivia’s political stability and legal framework, which have proven unpredictable.

By building a direct route through Paraguay, Argentina and Brazil would avoid these risks. The pipeline would use the new Bioceanic Corridor in Paraguay, which should help lower construction costs and limit environmental impact.

Government officials from all three countries have confirmed their involvement in a technical working group to study the project’s details and investment needs. The plan’s success will depend on Brazil’s demand for natural gas and the ability to secure financing.

This new pipeline reflects Argentina and Paraguay’s desire to control their own energy future and reduce dependence on Bolivia’s uncertain transit system.

If completed, the project could change energy trade in South America, strengthen regional ties, and support economic growth in areas like Paraguay’s Chaco region. All figures and information come from official government sources and public records.