CANADA OCT CPI 2.0% YOY IN LINE W/ FORECASTS, PRIOR 1.6%

CORRECTED-MNI: Gas Base Effect Pulls Canada CPI Back Up To 2%

MNI BRIEF: China To Enhance Policy Support In 2025: NDRC

MNI CBRT WATCH: Rates To Hold As Inflation Forecast Raised

MNI NBH WATCH: Rates Held At 6.5% As Expected

MNI BRIEF: NDRC Considering Trade-in Scheme Next Steps

EZ/UK Bond Supply Calendar: 10-Year GGB Auction on Wednesday

MNI: US REDBOOK: NOV STORE SALES +4.9% V YR AGO MO

MNI: US OCT HOUSING STARTS 1.311M; PERMITS 1.416M

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BRAZIL: Agreement To Import Argentina Gas Still Faces Structural Challenges

BRAZIL
BulletEM BulletEmerging Market News
  • Valor reports that the agreement for Brazil to import natural gas from Argentina’s Vaca Muerta field has been well received but faces several structural challenges that must be overcome for it to become a reality. These include the need to new pipelines or the use of existing infrastructure to provide a continuous supply of gas, as well as competitive pricing of imported gas.
  • The project may also need bilateral agreements with other nations, with Valor saying that the most suitable route would use a pipeline through Bolivia, requiring a partnership between the two countries.
  • In the medium term, the report says that an alternative could be to ship LNG to terminals on the Brazilian coast, which could start by 2027. For now, experts believe that investments on the existing pipelines via Bolivia should make the route viable. The agreement between Brazil and Argentina anticipates an initial import of 2mn cubic metres of natural gas per day starting in 2025, potentially reaching 30mn m3/d by 2030.
163 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Valor reports that the agreement for Brazil to import natural gas from Argentina’s Vaca Muerta field has been well received but faces several structural challenges that must be overcome for it to become a reality. These include the need to new pipelines or the use of existing infrastructure to provide a continuous supply of gas, as well as competitive pricing of imported gas.
  • The project may also need bilateral agreements with other nations, with Valor saying that the most suitable route would use a pipeline through Bolivia, requiring a partnership between the two countries.
  • In the medium term, the report says that an alternative could be to ship LNG to terminals on the Brazilian coast, which could start by 2027. For now, experts believe that investments on the existing pipelines via Bolivia should make the route viable. The agreement between Brazil and Argentina anticipates an initial import of 2mn cubic metres of natural gas per day starting in 2025, potentially reaching 30mn m3/d by 2030.