Uruguay is set to present a proposal for a natural gas pipeline traversing its territory to potential investors and neighboring governments. This infrastructure aims to connect Argentina’s Vaca Muerta shale deposit with Brazil, as stated by Industry & Energy Minister Fernanda Cardona in a recent interview. Cardona’s ministry has recently submitted a report outlining a potential pipeline route and gas demand to President Yamandú Orsi.
This report is intended to inform negotiations aimed at commencing construction by 2030. Cardona, however, refrained from disclosing additional details regarding the document. Cardona noted in an interview in Montevideo that “this was one of the issues that President Orsi took up the same month he started his term,” referring to March. She noted that Uruguay’s political stability, its geographical closeness to Brazil, and the presence of existing gas pipelines with Argentina render it an appealing choice that would enhance other proposals.
Cardona also visited Vaca Muerta earlier this year to assess interest. Despite its stability and wealth, Uruguay finds itself somewhat tardy in the endeavor to direct the increasing volumes of natural gas from the Vaca Muerta shale formation to industrial consumers in Brazil. Competing alternatives consist of enhancing a current pipeline traversing the crisis-prone region of Bolivia or constructing a new pipeline that either extends directly to Brazil or passes through Paraguay. Paraguay, a landlocked nation with a population of 6.1 million, comparable in size to California, is actively seeking support from Argentina and Brazil for a proposed US$1.9-billion pipeline traversing its territory.
In July, Paraguay and Argentina formalized their commitment to assess the proposal through a memorandum of understanding. According to Cardona, Uruguay might leverage gas from a prospective pipeline to energize its industrial sector. Argentina’s gas riches are projected to be sufficient to supply other countries. “We must adopt a forward-thinking approach to ensure that, should such a scenario arise, Uruguay stands to gain,” she stated.