Petrobras Begins First Cross-Border Gas Imports from Argentina’s Vaca Muerta

Petrobras imported natural gas from Argentina’s Vaca Muerta shale for the first time, transporting the fuel through Bolivia into Brazil. The import marks a milestone in regional gas trade and supports Brazil’s efforts to boost domestic supply and stabilize prices.

(Reuters) — Brazil's state-controlled oil company Petrobras has made its first import of non-conventional natural gas from Argentina's Vaca Muerta reservein the Neuquen basin, the company said on Oct. 6.

In a statement, the firm noted the natural gas was transported on Oct. 3 via pipelines from Argentina to Bolivia, and from there to Brazil, totaling 100,000 cubic meters of gas produced by companies POSA, its subsidiary in the country, and Pluspetrol.

The initiative fulfills the aspirations of Brazilian President Luiz Inacio Lula da Silva, who has been urging Petrobras to take steps to increase the domestic supply of natural gas, as he aims to reduce prices for consumers.

"This logistical and commercial solution opens a new possibility for importing natural gas into Brazil, reflecting Petrobras' commitment to increasing supply and to the sustainable development of the natural gas market," Director of Energy Transition and Sustainability Angelica Laureano said.

According to an agreement signed by the companies, Petrobras may import up to 2 million cubic meters of natural gas on an interruptible basis, the company said.

The transportation of natural gas from Argentina via Bolivia was extensively negotiated over the past year, in discussions that also involved the countries' governments.

Petrobras was not the first Brazilian firm to carry out such an import. In April, TotalEnergies sent gas from Vaca Muerta to Matrix Energia in Sao Paulo via pipelines. That transaction moved 500,000 cubic meters per day over a 10-day period.