In an energy crisis, Brazil shows interest in natural gas from Argentina’s Vaca Muerta field

RIO DE JANEIRO, BRAZIL – Brazilian Foreign Minister Carlos França expressed “enthusiasm” over the conclusion of an agreement with Argentina to buy gas from the Vaca Muerta field to supply Brazilian consumers.

França made the remarks Friday after a working meeting with Argentina’s Foreign Minister, Santiago Cafiero. During the meeting, the diplomats committed to identify and coordinate measures to promote economic recovery and agreed to define, together with the other Mercosur partners, the scope and characteristics of the review of the Common External Tariff (TEC).

Read also: Check out our coverage on Argentina

According to the Télam news agency, at the end of the meeting, the Brazilian Foreign Minister referred to the possibility of a gas pipeline from Vaca Muerta as “the mainstay of Brazil’s future growth.”

The country is currently experiencing the worst water crisis in more than 90 years, and electricity tariffs are being raised significantly due to the drought in the dams.

Faced with this scenario, Brazilians are trying to meet the needs of their domestic market through less costly alternatives. For gas supply, the Jair Bolsonaro-led state relies on the agreement with Bolivia, which has been in place for two decades.

In this context, the project for a gas pipeline with cheaper energy from the Argentine deposit is presented as a real opportunity for the energy system of the neighboring country.

“In Vaca Muerta, Argentina has a large production of the gas that Brazil needs. We are working hard to increase the connectivity of the input not only in terms of energy but also as a raw material for fertilizers,” França said. “For Brazil, Argentina is an absolute priority,” the official told the press.

Finally, the Brazilian foreign minister referred to the agreement with Bolivia and assured that the commitment with Argentina represents “a Gas 4.0 agreement.” “I am a proponent of integration with Vaca Muerta,” he said.