Fri Nov 15 18:51:40 IST 2024: ## Brazil and Argentina on the Verge of Historic Shale Gas Deal
**Rio de Janeiro, Brazil** – Brazil and Argentina are poised to finalize a long-awaited deal for the purchase of shale gas from Argentina’s Vaca Muerta fields. The announcement is expected following the G20 Summit in Rio de Janeiro next week.
The agreement will see Brazil initially purchasing 2 million cubic meters of gas per day, with the amount escalating to 10 million cubic meters per day for three years, ultimately reaching 30 million cubic meters per day in 2030. This agreement represents a significant boost for Argentina’s gas exports and offers Brazil a more cost-effective import option when needed.
Initial plans included financing from Brazil’s National Development Bank (BNDES) to extend a gas pipeline from Vaca Muerta to Buenos Aires and then to Brazil. However, the election of Argentina’s far-right President Javier Milei, who has strained relations with Brazil’s President Luiz Inácio Lula da Silva, led to the suspension of this aspect of the deal. It could be revisited in the future.
Instead, the agreement will now incorporate Bolivia, utilizing the existing Gasbol pipeline between Bolivia and Brazil. As natural gas production in Bolivia declines, this arrangement offers a new purpose for the pipeline and helps Argentina reduce its reliance on Bolivian imports.
The news of the impending agreement arrives just a day after Brazil announced its new Nationally Determined Contribution (NDC) at the COP29 climate summit in Baku, Azerbaijan. For the first time, the document outlined Brazil’s commitment to reducing its use of fossil fuels, including shale gas.
The Vaca Muerta fields, however, employ fracking, a potentially highly polluting method of gas extraction banned in parts of Brazil. The agreement raises questions about Brazil’s commitment to reducing its fossil fuel dependence in light of its reliance on fracked gas from Argentina.
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