Project will connect Muerta cow to the Brazilian market and integrate the Bioceanic Route of Capricorn, which will connect southern Brazil to the Chilean
The governments of Argentina and Paraguay signed this Wednesday (2.Jul.2024) a memorandum of understanding for the construction of the Bioceanic pipeline, which will connect the natural gas fields of Vaca Muerta, in Patagonia Argentina, to the Brazilian market, through Paraguayan territory.
The agreement was signed during the 66th Ordinary Meeting of the Common Market Council and the Mercosur Presidents Summit in Buenos Aires.
The measure establishes the creation of a binational technical group to elaborate studies on the technical, economic and environmental viability of the work. The main route considered involves the Paraguayan Chaco crossing, taking advantage of the territory as a logistics corridor to connect the Southern Cone through pipelines.
The group may also evaluate the inclusion of other natural gas reserves, as well as Muerta cow, in the energy corridor. The proposal complements an anterior memorandum signed between Brazil and Paraguay, and strengthens the energy and logistics integration plans discussed over a decade among Mercosur countries.
“It will be a wonderful work to create a currency transport and entry mechanism, as well as enhance our industry, as it will be in Paraguay to feed our industries in Chaco, where we have raw materials, labor and huge growth potential.”Paraguay Industry and Commerce Minister Javier Giménez.
Part of a larger project
Bioceanic pipeline is considered a key piece within the megaproject of the Capricorn Bioceanic Route, an infrastructure that includes a mesh of roads, bridges and pipelines, with the potential to connect the Atlantic and Pacific oceans through Argentina, Paraguay, Brazil and Chile.
The plan, which includes about 2,400 km of logistics infrastructure from southern Brazil to the Chilean north, seeks to compete with the Panama Canal in the flow of goods from South America for Asian markets.
