A major infrastructure initiative is gaining momentum across South America, with Paraguay positioning itself at the heart of a proposed gas transportation network connecting Argentina’s energy reserves to Brazilian markets. The gas pipeline would run from Argentina’s Vaca Muerta formation through Paraguay’s Chaco region and into Brazil’s Mato Grosso state.
Diplomatic momentum builds
Talks have intensified following recent exchanges between Paraguayan and Argentine officials in Buenos Aires. Paraguay’s Vice Minister of Mines and Energy, Mauricio Bejarano, reported encouraging progress in negotiations.
“We are quite close to signing the memorandum of understanding that will allow us to consolidate a technical working group,” he said during recent media appearances.
Argentina’s Energy Secretary, María Tettamanti, has reportedly expressed full support for formalising cooperation agreements. According to Bejarano, she indicated there were “no obstacles whatsoever to signing the memorandum and establishing a work framework for both countries to have technical teams advance the project’s feasibility.”
Paraguay’s rising energy consumption
Paraguay’s energy consumption increased by nearly 20% in the past year, elevating the gas pipeline project from a primarily export-focused idea to a national energy security priority.
“Paraguay initially projected this as transit infrastructure and an incentive to explore our natural gas for export to Brazil,” Bejarano explained. “However, with this almost 20% increase in electricity consumption last year, the need for this pipeline has accelerated.”
A CAF regional gas integration study covering Mercosur nations and Chile, has validated Paraguay’s proposed route. “Our project is becoming the winner,” Bejarano confirmed.
Technical foundation and gas pipeline timeline
Paraguay has completed prefeasibility studies, laying the foundation for detailed planning. The project benefits from the ongoing Bioceanic Route construction, which provides important logistical advantages. Officials estimate a three to four-year implementation period once agreements are in place.
“The entire calendar is programmed so this will be functioning by 2030, thanks to straightforward implementation and existing energy demands,” Bejarano noted.
Strategic energy planning
Paraguay envisions domestic applications through combined-cycle power generation in the central Chaco region, aimed at meeting rising residential, industrial, and large-scale consumer needs.
“What we want is to arrive in time with firm energy for our country, so that this energy surplus we still have remains attractive for bringing in industries, whether traditional or large new consumers,” the Vice Minister emphasised.
In parallel with natural gas developments, Paraguay’s hydroelectric capacity, particularly that of the Itaipú Dam, remains a cornerstone of its national energy strategy. The country’s abundant renewable resources not only support rising domestic demand but also enhance its appeal to global industries such as data processing and artificial intelligence, exemplified by recent developments like Paraguay’s Itaipú Dam sparking global AI investment potential.
Multilateral framework development
Paraguay is currently pursuing bilateral agreements with both Argentina and Brazil to establish a trilateral frameworkfor the corridor. These formal agreements will send strong signals to private investors. Bejarano stressed that signed memoranda would be “a very clear signal to the private sector that the three nations genuinely want this pipeline”.
As technical teams prepare for full feasibility studies, this continental corridor represents a strategic step toward South American energy independence and regional integration.
