CAF and OLADE Complete the First Phase of the Mercosur Gas Integration Project

CAF, Olade release

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

The project’s first stage, which brought together experts and representatives from Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay, has established a comprehensive assessment of the current and future landscape of natural gas in the region. The studies conducted reveal a dynamic scenario, characterized by production growth in the Neuquén and Rio de Janeiro basins, along with significant modifications to existing transportation networks.

“This first step is essential to consolidate energy integration that benefits the entire region,” said Jorge Srur, CAF’s Southern Regional Manager. He highlighted the partnership with OLADE and stated that “the results obtained not only allow us to identify opportunities for infrastructure optimization but also 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 the region needs.”

Meanwhile, Guido Maiulini, Head of Strategic Advisory at OLADE, emphasized that “this project is fundamental to consolidating, in a single space, the planning documents contributed by the countries. This allows us to move towards a shared transportation model and identify the main bottlenecks affecting both new supply and future demand. Based on this, we can advance towards greater integration of knowledge to precisely characterize the possibilities for optimizing the existing structure and the potential needs for new infrastructure.”

Uruguay, the host country for the closing events of this phase, demonstrated its strategic role in regional energy integration, standing out for its predominantly renewable energy matrix and key infrastructure, such as the Cruz del Sur gas pipeline. The events were attended by high-level representatives from Uruguay’s energy sector, including Elisa Facio, Minister of Industry, Energy, and Mining; Walter Verri, Deputy Minister of Industry, Energy, and Mining; Nicolás Spinelli, General Manager of ANCAP; Carlos Bellomo, General Manager of Montevideo Gas and Conecta; and Ruben Chaer, Manager of Technical and National Dispatch at ADME.

Minister of Industry, Energy, and Mining, Elisa Facio, highlighted that “the study conducted in Phase I of the Mercosur Gas Integration Regional Project, financed by CAF, provides us with a valuable roadmap to assess the current state of gas infrastructure, identify barriers, and generate proposals for its sustainable utilization. The need to review and update the Southern Cone scenario is imperative due to Argentina’s increased production, especially in Vaca Muerta, and Bolivia’s declining production.” She added, “For the development of the natural gas industry in Uruguay, securing supply is essential. The mitigation of supply risk could be achieved through active participation in interconnections between Argentina and Brazil, with primary sources such as Vaca Muerta and backup alternatives from Brazil via 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 throughout 2025, aiming to strengthen regional energy security and contribute to the energy transition and sustainable development goals of Latin America and the Caribbean.