Buenos Aires, April 2, 2025 – In a historic shift for Argentina’s energy sector, the country has successfully completed its first natural gas export to Brazil via Bolivia. This achievement was made possible by increased production from the Vaca Muerta shale formation and the utilization of existing Bolivian pipeline infrastructure.
The export was carried out by the French multinational TotalEnergies, Argentina’s leading gas operator. The company, which also holds a strong presence in Brazil with an output of 200,000 barrels of oil per day, facilitated the transaction through prior business ties with Bolivia’s state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB).
Expanding Argentina’s Energy Market
The initial shipment consisted of 500,000 cubic meters of gas per day, with Bolivia charging a transit fee equivalent to approximately 10% of the final price. While the exact sale price was not disclosed, this transaction sets the stage for Argentina to expand its energy exports.
TotalEnergies, which produced 36 million cubic meters per day in February—25% of Argentina’s total gas output—played a key role in this export breakthrough. The company sources 61% of its gas from offshore operations in Tierra del Fuego, with the remainder coming from the Neuquén Basin.
Infrastructure developments such as the Perito Moreno pipeline (formerly known as the Néstor Kirchner pipeline) and the reversal of the Norte pipeline’s flow have been crucial in making these exports feasible. The gas was transported through Argentina’s national grid via TGN and TGS pipelines to Campo Durán, Salta, before being delivered to Brazil through Bolivia’s Madrejones pipeline.
Future Expansion and Economic Impact
Argentina already exports around 2 million cubic meters per day to Brazil through the Paso de los Libres-Uruguaiana pipeline. However, this new route presents an opportunity for larger-scale exports, potentially reaching 10-15 million cubic meters per day. Industry estimates suggest that the maximum price for these transactions could be $10 per million BTU, provided that wellhead costs remain below $3.5 per million BTU.
Brazil, which relies heavily on Bolivian gas, is facing declining production from its northern neighbor. At the same time, Argentina is experiencing a gas surplus with limited domestic demand. This convergence of factors positions Brazil as a key future buyer of Argentine gas.
Brazil’s energy security is also a growing concern, particularly after experiencing its worst drought in 74 years in 2024, which reduced hydroelectric reservoir levels to 49%. With 70% of its energy coming from hydroelectric sources, Brazil is increasingly looking for alternative energy supplies.
Trade Balance and Projections
The potential growth in gas exports could significantly impact Argentina’s trade balance with Brazil, which is currently in deficit. Private sector projections indicate that, with a production rate of 150 million cubic meters per day, Argentina could eventually export 8% of its gas output to Brazil.
Economía y Energía (EyE), an economic consultancy, estimates that gas exports in 2025 could reach $800 million. This projection includes volumes exported via the Gasandes pipeline, which varies seasonally from 4 to 8 million cubic meters per day. Meanwhile, crude oil exports are expected to generate $6.875 billion, up by $1.4 billion from 2024.
The energy sector’s trade surplus is forecasted to reach $7.5 billion in 2025, driven by growing crude exports and reduced import needs. This continued expansion highlights Argentina’s potential to become a major energy exporter in South America, leveraging its abundant natural gas reserves to secure economic growth.
