Last chance saloon: Brazil, Argentina seek closer gas ties, investment risks linger

Only Subscribers can read the full Article

At an oil and gas event in Buenos Aires last December, Argentina’s energy secretary Flavia Royon announced what seemed like a breakthrough: Brazil’s state-owned development bank, BNDES, and the Development Bank of Latin America (CAF) had agreed to finance the construction of the remaining phase of a key gas pipeline from the Vaca Muerta shale play. The banks would provide loans of USD 689 million and USD 540 million respectively to build the second section of the President Nestor Kirchner pipeline.

The cash-strapped Argentinian state is funding the first, 563-km section of the route. On a visit to Argentina in January 2023, Brazil’s president Luiz Inacio Lula da Silva referred to the BNDES when he said his government would “create the conditions” to finance the remaining phase. Argentina has declared the infrastructure project to be of “national public interest” and says it could also help pave the way to energy self-sufficiency and eventually more gas exports, including to Brazil.

However, neither of the apparent funding pledges appear to be forthcoming. 

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.