CAF and OLADE complete first phase of Mercosur gas integration Project

CAF, Development Bank of Latin America and the Caribbean, and the Latin American Energy Organization (OLADE) announced today the successful completion of the first phase of the Mercosur Regional Gas Integration Project, marking a significant milestone in the energy development of the region.

The first stage of the project, which brought together experts and representatives from Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay, has established an exhaustive diagnosis of the current and future panorama of natural gas in the region. The studies carried out reveal a dynamic scenario, characterized by the growth of production in the Neuquén and Rio de Janeiro basins, together with important modifications in the existing transportation networks.

"This first step is essential to consolidate energy integration that benefits the entire region," said Jorge Srur, Southern Regional Manager of CAF - Development Bank of Latin America and the Caribbean, who highlighted the alliance with OLADE and stated that "the results obtained allow us to not only visualize the opportunities for infrastructure optimization, but also to reaffirm our commitment to a fair and sustainable energy transition. As a development bank, we seek to be a catalyst that links technical knowledge with the necessary financing, facilitating dialogue and trust between public and private actors to materialize the investments that the region needs." 

Guido Maiulini, Head of Strategic Consulting at OLADE, stressed that “this project is essential to consolidate, in a single space, the planning documents provided by the countries. This allows us to move towards a shared transport model and detect the main bottlenecks that affect both new supply and future demand. On this basis, we will be able to move towards greater integration of knowledge that will allow us to accurately characterize the possibilities of optimization of the existing structure and the eventual needs for new infrastructure.”

Uruguay, the host country of the closing events of this phase, demonstrated its strategic role in regional energy integration, standing out for its predominantly renewable matrix and its key infrastructure, such as the Cruz del Sur gas pipeline. High-level representatives of the Uruguayan energy sector participated in the events, including Elisa Facio, Minister of the Ministry of Industry, Energy and Mining; Walter Verri, Assistant Secretary of the Ministry of Industry, Energy and Mining; Nicolás Spinelli, General Manager of ANCAP; Carlos Bellomo, General Manager of Montevideo Gas y Conecta; and Ruben Chaer, Manager of Technical and National Dispatch of ADME.

The Minister of Industry, Energy and Mining, Elisa Facio, highlighted that “the study developed in Phase I of the Mercosur Regional Gas Integration Project, which was financed by CAF, offers us a valuable roadmap to evaluate the current state of the gas infrastructure, identify barriers and generate proposals for its sustainable use. The need to review and update the Southern Cone scenario is imperative due to the increase in Argentina's production, especially in Vaca Muerta, and the decrease in Bolivia's production.” She added, “for the development of the natural gas industry in Uruguay, it is necessary to ensure supply. Mitigation of the risk of shortages could be achieved through active participation in the interconnections between Argentina and Brazil, with main sources such as Vaca Muerta and backup alternatives from Brazil through natural gas or liquefied natural gas.”

The next phases of the project will focus on infrastructure optimization and the development of strategic transportation project profiles. OLADE will implement a unified methodology for demand and supply projections, working closely with member countries to incorporate their existing methodologies and recent projections. 

The project will continue to be developed throughout 2025, with the aim of strengthening regional energy security and contributing to the energy transition and sustainable development goals of Latin America and the Caribbean.