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Paraguay is making strides in discussions with energy firms and officials from Argentina and Brazil regarding a potential $1.5 billion gas pipeline project that would link the three nations. The initiative, revealed for the first time, is intended to rival a Bolivian proposal to repurpose existing pipelines for transporting Argentine gas to Brazil, potentially reshaping regional energy dynamics.
Mauricio Bejarano, Paraguay’s deputy mining and energy minister, expressed the country’s eagerness to formalize a memorandum of understanding at a presidential level for the pipeline by June, signaling broad support for the endeavor. As Bolivia’s gas production declines, Brazil seeks alternative suppliers, prompting interest in sourcing gas from Argentina’s Vaca Muerta shale region through Paraguay’s Chaco region, requiring an estimated investment of $1.2-$1.5 billion, partly from the private sector.
Discussions have also taken place with Bolivian officials on potential gas transportation options from Vaca Muerta to northern regions, including the possibility of reversing Bolivia’s pipeline network flow. Paraguayan officials have engaged with investors in Sao Paulo and met with energy officials from Brazil and Argentina, including companies like Tecpetrol and Pluspetrol, which hold significant stakes in Argentina’s shale gas sector.
The proposed pipeline’s initial daily capacity is projected at 15 million cubic meters in the first phase, with plans outlining a route spanning 110 kilometers from northern Argentina to the Paraguayan border, continuing across 530 kilometers of flat, arid terrain within Paraguay. Alexandre Silveira, the Brazilian Mines and Energy Minister, has expressed support for Paraguay’s initiative but emphasized the need for further feasibility studies before proceeding.
