After it became known that the Brazilian government was negotiating with Argentina to build a gas pipeline to buy gas from Vaca Muerta’s reserves, hydrocarbon expert Hugo del Granado thought this was logical, given that Bolivia needed the Brazilian market for a lack of gas.
Bolivia also does not have the reserves to face a long-term gas purchase agreement. Added to this are the difficulties of attracting new investments and initiating an intensive exploration plan. “(The negotiations between Argentina and Brazil) are long-term plans. The largest market is Brazil and Argentina has the largest gas reserves, so it was only logical that both would agree to monetize the gas reserves. We have known that in Bolivia since they certified the Vaca Muerta reserves, ”said del Granado.
If Bolivia wants to play its last cards in order not to withdraw from the gas export market, the expert believes that it must attract foreign investment and change the laws that inhibit private investment. “YPFB cannot take on this role due to the size of the investment.”
“The country has no gas in the medium and long term, so it will have to withdraw from such important export markets (Argentina and Brazil), because the most important connection to the oil business is about having reserves,” the expert explains in detail.
Brazil and Argentina have started talks to build the gas pipeline, but funding is still being sought for the roughly $ 4.9 billion project.
Last year, the Brazilian ambassador Daniel Scioli said that the project to build a gas pipeline was in his sights: “We are now in the exploration phase. Both governments have the will to move the project forward ”. He told the Brazilian magazine Valor Economico: “This is our big binational project. Brazil needs gas and we need markets and investments ”.