Uruguay Proposes Gas Pipeline Route for Vaca Muerta's Natural Gas Reserves
Uruguay Plans to Build Gas Pipeline from Argentina to Brazil
Uruguay is planning to propose a natural gas pipeline through its territory, aiming to connect Argentina's Vaca Muerta shale deposit with Brazil. This move comes as Uruguay looks to secure a share of Argentina's gas riches to meet its industrial power needs.
Industry and Energy Minister Fernanda Cardona has emphasized the need for Uruguay to plan ahead to benefit from potential pipeline gas supplies. She declined to provide further details about the report, but did mention that Uruguay's political stability, proximity to Brazil, and existing gas pipelines with Argentina make it an attractive option.
Cardona visited Vaca Muerta earlier this year to gauge interest, and Uruguay is now addressing companies and institutions from Brazil and Argentina to participate in financing the pipeline's construction, which is expected to start by 2030.
Negotiations for the pipeline's construction are not new, as Paraguay, a landlocked country of 6.1 million people, is already lobbying Argentina and Brazil to back a $1.9 billion pipeline across its territory. Paraguay and Argentina signed a memorandum of understanding to evaluate that proposal in July, but there is no new information about Uruguay's potential involvement in this project.
Competing options include upgrading an existing pipeline that runs through crisis-prone Bolivia or building a pipeline directly to Brazil or through Paraguay. The proposed pipeline route and gas demand have been submitted in a report to Uruguay's President Yamandu Orsi, but the article does not provide information about the pipeline route or competing options.
It's worth noting that Argentina's gas riches could potentially supply other countries, and the article does not provide information about the potential cost or financial implications of the pipeline for Uruguay. However, Cardona emphasizes the importance of securing a stable supply of natural gas for Uruguay's industrial growth.
As the negotiations for the pipeline's construction begin, Uruguay is positioning itself as a key player in the race to channel natural gas from Vaca Muerta shale formation to industrial buyers in Brazil. The exact details of the pipeline's route, capacity, and financial aspects remain to be seen, but Uruguay's political stability and proximity to Brazil could give it an edge in the competition.
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