The contract is spot, which means that supplies could be interrupted during the winter, when demand in Argentina is highest.
TotalEnergies has exported natural gas from the Vaca Muerta field in Argentina to Matrix Energia of Brazil using a set of Bolivian pipelines for the first time, Matrix said in a statement Tuesday.
Companies and governments from Bolivia, Argentina, and Brazil have been negotiating agreements for over a year, seeking to secure a long-term route for Argentine gas to reach one of the most important gas markets in Latin America.
According to sources familiar with the matter, around 500,000 cubic meters of crude oil were exported through the Bolivian pipeline on Tuesday.
The contract is spot, meaning supplies could be disrupted during the winter when demand in Argentina is highest, one of the sources told Reuters.
"This unprecedented operation aims to verify the technical viability of the logistics route, which involves the interconnection of different agents throughout the supply chain," Matrix said in a statement.
The company added that the movement was a result of the gas import agreements signed between Matrix Energia and TotalEnergies Argentina, and the contracting of the aggregation and transportation service by Matrix Energia with YPFB, in line with the tripartite operating agreement communicated to the market at the end of 2024.
A major stumbling block to the deal was Bolivia's initial intention to charge a fee for the use of its infrastructure, preferring an option that would allow it to buy gas from Argentina and then resell it to Brazil, sources told Reuters last year.
But negotiations have improved in recent months, with several potential supply contracts identified, they added.
The pipeline has transported Bolivian gas to Brazil and Argentina for years, but as Bolivia's gas production has declined, export volumes have decreased.
The arrival of Vaca Muerta gas to Brazil is a victory for President Luiz Inácio Lula da Silva, who seeks to supply cheaper gas to the country's industry.
If exports continue, they would also represent a victory for Argentina, whose gas production is booming under the market-friendly policies of President Javier Milei, opening up a new source of revenue for the country, which until recently had a deficit in its energy trade balance.
Bolivia's state-owned energy company, YPFB, did not immediately respond to a Reuters request for comment on the new exports through Bolivian pipelines.
