Paraguay is advancing discussions with Argentina and Brazil over a $1.5 billion gas pipeline to connect the three countries, potentially altering regional energy dynamics. This initiative competes with a Bolivian proposal to repurpose existing pipelines to transport Argentine gas to Brazil. Paraguay’s plan would source gas from Argentina’s Vaca Muerta shale region, with the pipeline running through the Paraguayan Chaco, ultimately linking to Brazil’s energy infrastructure. Paraguayan officials aim to sign a memorandum of understanding by June 2024.

The project’s success is key to addressing Brazil’s energy demand, as declining Bolivian gas output forces the country to seek alternative sources. The Paraguayan pipeline could help supply Brazil’s Tres Lagoas fertilizer plant. Brazil’s Mines and Energy Minister, Alexandre Silveira, confirmed interest but emphasized further studies to assess the pipeline’s viability.

This potential infrastructure development marks Paraguay’s ambition to play a pivotal role in South America’s evolving energy landscape.

Source: Reuters