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OLADE and CAF recommend strengthening gas infrastructure between Chile and Argentina
Wednesday, March 26, 2025 - 15:00
Fuente: Cepal

A joint study by both international organizations suggests that the new investments required, which would exceed US$3.5 billion, are key to ensuring supply between the two nations.

Strengthening the gas supply infrastructure between Chile and Argentina, along with regulatory improvements and incentives for corporate participation in the industry, are some of the main recommendations of the "Argentina-Chile Gas Integration" study, conducted by the Latin American Energy Organization (OLADE) and the Development Bank of Latin America and the Caribbean (CAF) and presented today at ECLAC.

The analysis indicates that the expansion of gas pipelines between the two nations is estimated at approximately US$3.65 billion.

Investments between the neighboring country and northern Chile are projected to reach US$1.75 billion, while in the central regions of both countries, the amount is estimated at US$1.2 billion. Meanwhile, expanding the Perito Moreno gas pipeline would require US$700 million.

The study states that the works aim to promote "trade, increase exports, reduce imports and the long-term costs of the Chilean system, as well as incentivize the potential development of investments in large projects that could extend the useful life of existing infrastructure (such as gas pipelines or the Quintero LNG terminal)."

At the same time, it is emphasized that this energy source avoids the use of polluting fuels and reduces carbon emissions.

The document notes that "the aggregate economic impact of each of the infrastructure expansion alternatives is such that for every dollar committed to financing the works, after 10 years of operation, regional value generation will have increased by a factor ranging from 4 to 14."

Andrés Rebolledo, executive secretary of the Latin American Energy Organization (OLADE), stated that today marks the beginning of a "new era of energy integration between Chile and Argentina," making investments within the framework of a public-private partnership important.

The executive secretary of OLADE stated that there is an "urgent need for energy security in these countries," adding that natural gas is a significant resource, accounting for 4% of the world's natural gas, and 20% of electricity is generated with this fuel.

He added that by 2050, this energy source will account for around 20% of the total supply, making it necessary for neighboring countries in Latin America to strengthen ties with a view to an energy transition.

For his part, Federico Veller, Argentina's Undersecretary of Liquid and Gaseous Fuels, highlighted the "extraordinary" moment hydrocarbon production is experiencing in that country, with high levels of competitiveness.

He explained that they currently have eleven investment projects underway in the Vaca Muerta region of Argentina, which will allow for increased exports in the medium and long term.

Regarding gas integration with Chile, he said that since October 2024, gas export contracts have been signed until 2028.

"We need to be more ambitious and seek longer-term agreements with Chile that respond to the supply generated by the investment projects we are developing jointly with private companies," he stated.

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