Vaca Muerta Tests Put South America on a New Track

Brazil taps Argentina’s Vaca Muerta gas, reshaping supply strategy and spurring new regional energy alliances

2 Dec 2025

Brazil’s gas map is being redrawn. On October 3rd Petrobras received its first shipment of shale gas from Argentina’s Vaca Muerta, routed quietly through Bolivia along an old export corridor once used only for Bolivian supply. The cargo was small; its message was not. It suggested how South America may trade energy in the years ahead.

The move followed an April trial by TotalEnergies, which sent Vaca Muerta gas to Matrix Energia through the same route. Together the tests revived pipelines left underused as Bolivia’s own output dwindled. They are now being probed as bridges between Argentina’s fast-growing shale fields and Brazil’s rising demand.

To pull off the October flow Petrobras teamed up with Pluspetrol and the trader Gas Bridge. Bolivia’s spare capacity made the detour viable and hinted at a more adaptable regional grid than its planners ever expected. Each shipment also strengthens Vaca Muerta’s bid to become a regional force, with export ambitions no longer confined to Argentina’s borders.

For Argentina the imports offer a path to turn its shale boom into a steadier source of foreign income. For Brazil the logic is more urgent. Domestic consumption keeps climbing, Bolivian volumes keep shrinking and dependence on LNG exposes buyers to sharp price swings. A regular supply from a neighbour could add resilience, even if meaningful flows remain some way off.

Yet obstacles abound. Argentina’s winter demand could swallow surplus output. Ageing pipelines may need costly upgrades. Aligning tariffs and rules across three governments is never simple, and commercial scale is far from assured.

Competition adds further intrigue. Private shipments like the April cargo could vie with Petrobras for space and customers. The balance among these channels will influence prices, reliability and investment across the basin.

Even so, the early trials mark a subtle shift. Brazil inches toward a sturdier gas cushion. Argentina edges closer to supplier status. Bolivia gains renewed purpose for its pipes. Should pilots harden into routine trade, the continent may be entering a more connected energy era.