The agreement allows YPFB’s gas transportation companies to manage the flow of natural gas through its existing pipeline network connecting Argentina and Brazil. Credit: Sobrevolando Patagonia/Shutterstock.

Brazil’s Grupo Matrix Energia and Argentina’s TotalEnergies have confirmed their first deal with YPFB, to transport natural gas from Argentina’s Vaca Muerta shale formation, reported Reuters.

This agreement, initially signed on 22 November, aims to address the region’s shifting supply dynamics by using Bolivia’s transport infrastructure.

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YPFB, Bolivia’s state energy company, announced that this deal is a crucial step towards enabling Argentine gas supplies to reach Brazilian consumers, thereby strengthening the regional energy integration process, the report stated.

Bolivia, once a key producer, has seen a decline in exports, prompting Argentina and Brazil to explore alternative supply routes.

Argentina, reputed to hold the world’s second-largest shale gas reserves, is positioning itself as a gas exporter. However, the country is still developing the necessary pipeline network and commercial frameworks required to negotiate tariffs.

The agreement allows YPFB’s gas transportation companies to manage the flow of natural gas through its existing 1,000km pipeline network connecting Argentina and Brazil.

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In addition to the transport agreement, TotalEnergies and Matrix Energia have signed a purchase and sales contract, the report said.

YPFB confirmed that TotalEnergies has obtained two permits to export natural gas from the Austral and Neuquen Basins to Brazil.

In a related development, YPF is reportedly merging its liquefied natural gas (LNG) project with a venture by Pan American Energy Group and Golar LNG. This strategic move is expected to boost production and exports from the Vaca Muerta formation, enhancing Argentina’s position in the global LNG market.

According to a recent Reuters report, YPF plans to secure $2bn (2.02trn pesos) in financing for its Vaca Muerta Sur pipeline project by the second quarter of 2025.

The project aims to transport an additional 390,000 barrels per day of oil from the Vaca Muerta formation to a coastal export terminal in Rio Negro province, Argentina. It is being led by Vaca Muerta Oil Sur, a company controlled by YPF.