Government of Paraguay thinks about the gas pipeline as an axis for the energy integration of Mercosur

This Ministry of Industry and Commerce release was published using machine translation.

The head of the MIC, Javier Giménez, during the Gas and Energy Forum, spoke about the importance of energy in Paraguay, highlighting the opportunity of the gas pipeline for the union of the South American region and also for the development of the country. Likewise, he commented that the MIC is working on modifying the Law that regulates the percentage of biodiesel mixture.

Within the framework of the 16th Edition of the Gas and Energy Forum; which runs until this Friday the 5th, at the Sheraton Hotel, Minister Giménez commented on the capacity of the gas pipeline to transport 30 million cubic meters per day from Vaca Muerta Argentina, to Brazil, which was highlighted by the head of the MIC as an project, which not only represents a significant economic opportunity for Argentina, but also stands as a milestone in the regional integration of Mercosur.

“This gas pipeline may be the greatest example of regional integration in history, because we already have two in Paraguay. One is the waterway, which crosses five countries, coming from Brazil, Bolivia, Paraguay, Argentina and Uruguay. Now we have the bioceanic route that connects the Pacific with the Atlantic, also passing through Paraguay,” said Giménez.

In this sense, he pointed out that this is not only seen as a solution for Argentina, but it is also an unparalleled opportunity for the country, since Paraguay could initially serve as a country that will provide transportation services for that gas, for which is charging a rate of USD 2 to 3, which could mean between USD 500 and 600 million per year, just with logistics.

“This is an opportunity that we cannot miss and that as a Government we are going to place on the agenda as a matter not only of industrial development, job creation, investments and opportunities like the ones we are visiting, but as a matter of fundamental energy integration.” for Mercosur,” said the Minister.

Gradual increase in biofuel

On the other hand, Giménez referred to the work being carried out by the Ministry of Industry and Commerce, in relation to the progressive increase in the biofuel mix, which went from 2 to 5%, in October of last year.

In this sense, the high president pointed out that the MIC is currently working on modifying the legislation that regulates the percentage of the mix of this item, with the objective of aligning energy policies with international practices, seeking to gradually increase the proportion of biofuels in the energy matrix, which promises both economic and environmental benefits.

“It will have to be gradual, not based on the will of the government, but based on production itself, because if we go from 5 to 12 there is not that capacity yet. But that is our commitment and our desire, because the industry is prepared and is hungry and is eager for us to give it that to be able to carry out its investment plan with predictability and development,” said Minister Giménez.

Likewise, he indicated about an important investment project in the city of Villeta, which will transform the country's agricultural industry by using 100% of the national soybean production for the production of sustainable biofuels (SAF). This approach not only positions Paraguay as a leader in decarbonization, but also strengthens its agricultural economy.