Uruguaiana plant should receive gas from Argentina later this year

Uruguaiana plant should receive gas from Argentina later this year

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Diego Nuñez and Jefferson Klein

The construction of the Néstor Kirchner gas pipeline, which is underway in Argentina and is about to have its first stage completed, will allow the flow of shale gas (also called shale gas) from one of the largest deposits in the world, that of Vaca Muerta. The work will benefit not only the neighboring country, but also Rio Grande do Sulsince with the advancement of the Argentine gas pipeline network, the gas from Vaca Muerta will be able to reach the Uruguaiana thermoelectric plant as of October 2023.

The plant, historically, suffers from the interruption of the supply of Argentine natural gas, having to stop operating. However, with the new fuel source, the prospect increases that the thermal plant will be able to generate energy from next summer, at a more affordable cost.

The theme of the gas pipeline was one of the topics covered during the seminar on opportunities between Brazil and Argentina held this Thursday (2) at the Federation of Industries of the State of Rio Grande do Sul (Fiergs), in Porto Alegre. At the time, Argentina’s Secretary of Energy, Flavia Gabriela Royón, informed that, with the works being carried out, it is possible to supply the Uruguaiana plant with a potential demand of at least 2.5 million cubic meters of gas per day. in the last quarter of this year.

Due to the importance of the undertaking, the president of Fiergs, Gilberto Petry, defends the financing by Brazil for the construction of the gas pipeline in Argentina. “The first beneficiary of the gas pipeline is Rio Grande do Sul”, emphasizes the director. However, the leader argues that this action must be linked to the issue of supplying Brazil with Argentine fuel.

Flavia explains that the financing situation is being negotiated with the Bndes, as well as with other international funds. In the case of the Brazilian bank, the focus is on obtaining funds to acquire steel sheets for the implementation of the second stage of the gas pipeline, and these materials would be exported from Brazil to Argentina. When the two phases of the Néstor Kirchner gas pipeline are completed, which should happen in 2024, the structure will be a little over 1,000 kilometers long and will absorb around US$ 6 billion in investments. The gas pipeline will have the capacity to transport up to 44 million cubic meters of gas per day (which represents more than 15 times the service capacity of the Bolivia-Brazil gas pipeline – Gasbol – to Rio Grande do Sul).

Argentina’s Secretary of Energy says that the war between Russia and Ukraine has shown that integration in the area of ​​energy is strategic. She points out that this is a subject discussed by Argentines with countries like Chile, Uruguay, Paraguay, Bolivia and Brazil. “Energy security is a priority issue”, she reinforces.

Vice-governor Gabriel Souza points out that Rio Grande do Sul is constantly looking for new energy sources. He reiterates that Gasbol enters the state with a limited capacity (around 2.8 million cubic meters a day). “We do need and want more gas”, stresses the deputy governor. For gas from Vaca Muerta to enter the state and not just stay on the border with Uruguaiana, among the options evaluated are the construction of a gas pipeline between the municipality of Fronteira Oeste and the metropolitan region of Porto Alegre, the installation of a gas pipeline from the Argentine city from Punta Lara to the capital of Rio Grande do Sul and the supply by liquefied natural gas (LNG).

Also present at the Fiergs event, the ambassador of the Republic of Argentina, Daniel Scioli, recalled that the meeting that took place in Buenos Aires, in January, between the presidents of Brazil, Luiz Inácio Lula da Silva, and of Argentina, Alberto Fernández, served to intensify the ties of binational integration between the two countries. He adds that it is up to both nations to improve their infrastructure conditions, to reduce costs and become more competitive. “It is necessary to produce more and more and add value to goods”, defends the leader. At this Thursday’s meeting, the governor of the Province of Misiones, Oscar Herrera Ahuad, also highlighted the opportunities in the region. He cited the importance of carrying out the construction of the international bridge over the Uruguay River connecting the municipality of Porto Xavier to San Javier, in Argentina.

First phase of the pipeline will be completed by June

Argentina’s ambassador to Brazil, the former vice-president of the neighboring country Daniel Scioli, brought a delegation of Argentine ministers to Porto Alegre to strengthen political and economic ties with Rio Grande do Sul – which has been the country’s main partner for two years trade of Argentina among the Brazilian states.

The delegation met with Governor Eduardo Leite (PSDB) at the Piratini Palace. The main subject was the implementation of the Uruguaiana-Porto Alegre gas pipeline, which would allow the importation of gas from the Vaca Muerta deposit, in a new energy alternative not only for the State, but for Brazil.

RS and Argentina reinforced their interest in the implementation of the gas pipeline. The nation seeks to export this natural resource and the State currently imports around 40% of the energy it consumes.

At the same time, Argentina is already working on the construction of the Néstor Kirchner Gas Pipeline, which will allow the transport of gas from Vaca Muerta to various locations in the country and can even reach Uruguaiana.

Scioli informed that the first phase of the works, which will connect Vaca Muerta to the province of Buenos Aires, should be completed by June. The operation would already allow to increase the importation of gas from the territorial neighbors. “The first part ends now in June. This will already allow exporting more gas to Brazil”, declared the ambassador.

The former Argentine vice president also informed that the second phase, which will link the province of Buenos Aires to the municipality of San Jerónimo, in the province of Entre Rios, should be completed within a year, with completion expected in 2024.

“The pipeline offers a double possibility of supplying gas to Brazil. Today, Argentine gas is much cheaper than Bolivian gas. Without a doubt, it would be a very important step forward. (The Uruguaiana-Porto Alegre gas pipeline) is in execution negotiations. There is already an interested company that made the purchase and the idea is to finance it via BNDES”, reported the leader of the Leite government in the Legislative Assembly, state deputy Frederico Antunes (PP), who participated in the meeting and maintains relations with Scioli and the Argentine entourage.

Regardless of a pipeline capable of connecting Argentine raw materials to the capital of Rio Grande do Sul, the mere fact that the gas reaches Uruguaiana would already increase the state’s energy potential. “In Uruguaiana, we have a thermoelectric plant with a capacity of 650 megawatts, which today is not in production due to lack of gas. The goal is to inject gas into it through production in Argentina”, explains Antunes.

Another subject discussed between Leite and the Argentines was three bridges between the countries: the improvement of the Uruguaiana bridge, the maintenance of the concession and operation of the bridge between São Borja and Santo Tomé and the construction of a new bridge between San Javier and Porto Xavier.

Today, São Borja and Uruguaiana concentrate 99% of the trade flow between Brazil and Argentina. From the construction of the bridge in Porto Xavier, the city could reach a participation of 20 to 30% of the products.

RS remains Argentina’s main trading partner

RS remains Argentina’s main trading partner with US$ 4 billion traded

Rio Grande do Sul consolidates itself as Argentina’s main commercial partner in the national territory. For the second consecutive year, RS had the highest trade balance with Argentines among Brazilian states. Between imports and exports, the gauchos sell around US$ 4 billion.

The result was an increase of 29% compared to the period of 2021 – the year in which RS surpassed São Paulo in commercialization with Argentines. Total sales at the time were US$3.1 billion.

During 2022, Rio Grande do Sul imported US$ 2.75 billion from Argentina and imported US$ 1.25 billion from the neighboring country.

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