Brazil and Paraguay are discussing a new gas pipeline project to connect an existing network in Argentina with Brazil’s Central-West and Southeast regions. A memorandum of understanding has been signed, committing both countries to study the best route. The pipeline is expected to cover about one thousand kilometers and is seen as a key initiative for enhancing energy supply and economic benefits for both countries.
Brazil and Paraguay are actively discussing the development of a gas pipeline aimed at linking an existing pipeline network in Argentina with the Central-West and Southeast regions of Brazil. Representatives from Paraguay visited Campo Grande, the capital of Mato Grosso do Sul, to advance the discussions, culminating in a memorandum of understanding that commits both parties to study the most advantageous route for the pipeline.
This planned pipeline is projected to span about one thousand kilometers, starting from an existing gas pipeline in Argentina. The intended route will enter Paraguay via the Chaco region and then extend into Mato Grosso do Sul, parallel to the Bioceanic Corridor, which is currently under construction. The memorandum establishes a working group dedicated to coordinating the studies necessary for the pipeline’s realization.
According to Francisco Javier Giménez, Paraguay’s Minister of Industry and Commerce, this technical group will draft the preliminary project alongside a feasibility study. The project envisions 450 kilometers in Argentina, another section in Paraguay, and an additional stretch in Mato Grosso do Sul, with minimal topographical challenges expected along the proposed route, facilitating installation.
For Brazil, importing natural gas from Argentina presents significant economic benefits, especially for high-demand sectors such as industry. Data indicate that natural gas from Argentina’s Vaca Muerta is approximately 30% cheaper than gas sourced from Bolivia. The gas pipeline represents a viable, efficient solution for large-scale gas transportation, similar to practices in major global economies. Meanwhile, Paraguay, lacking its own gas pipeline infrastructure, sees the project as an investment opportunity to enhance its industrial capabilities.
The collaborative effort between Brazil and Paraguay regarding the gas pipeline underscores the potential economic benefits for both nations. By connecting to Argentina’s gas supply, Brazil aims to gain access to more affordable natural gas, while Paraguay seeks to establish crucial infrastructure to support its industrial sector. The project represents a significant step in regional collaboration in energy resources and infrastructure development.
Original Source: www.h2foz.com.br
