Argentina and Chile are consolidating their energy integration through the “Argentina-Chile Gas Integration” project, whose results were presented at a meeting held at ECLAC headquarters, with the participation of authorities, energy sector specialists, and representatives from the private sector.
The initiative, driven by the Latin American and Caribbean Energy Organization (OLACDE) and the Development Bank of Latin America and the Caribbean (CAF), seeks to strengthen natural gas transport infrastructure between the two countries and move toward broader regional integration, including Bolivia and the MERCOSUR countries.
During the event, the main findings of the technical study developed by OLACDE under CAF’s Regional Infrastructure Pre-Investment Program were presented. The report highlights the strategic potential of natural gas as a driver of industrial and energy development in Latin America.
According to the analysis, expanding the binational pipelines would require an estimated investment of US$3.65 billion. In addition to boosting bilateral trade, the works would allow for increased exports, reduced imports, and lower long-term costs for the Chilean system. The study also proposes extending the useful life of existing infrastructure such as pipelines and the Quintero LNG terminal, thereby avoiding the use of more polluting fuels.
OLACDE’s Executive Secretary, Andrés Rebolledo, warned of the “urgency of energy security” in the region. “Latin America produces 4% of the world’s natural gas, and 20% of the region’s electricity generation depends on this fuel. By 2050, it will still account for about 20% of the energy matrix,” he noted.
Sergio Díaz-Granados, CEO of CAF, stated that “natural gas will be key to the energy transition, and investing in its infrastructure is essential.” He also praised the partnership between Chile and Argentina and the joint work with OLACDE.
For his part, Chile’s Minister of Energy, Diego Pardow, noted that the study “provides concrete data that strengthens decision-making and promotes public integration.” “We have a great opportunity in the regional energy market, and now is the time to step on the accelerator,” he said.
Argentina’s Undersecretary of Liquid and Gaseous Fuels, Federico Veller, described the current moment for hydrocarbon production in his country as “extraordinary,” with eleven projects underway in Vaca Muerta that will allow exports to increase in the medium and long term. “We must be more ambitious and sign longer-term agreements with Chile,” he added.
From the private sector, Santiago Romero Oneto, general manager of Gasandes, noted that gas transport capacity is currently underutilized and called for establishing long-term contracts to guarantee financing for the necessary works.
At the panel “Gas Integration and Opportunities in Chile and Argentina,” moderated by Guido Maiulini, OLACDE’s Head of Strategic Advisory, participants discussed challenges and opportunities for building more sustainable and efficient regional energy markets.
Christian Asinelli, Vice President of Strategic Programming at CAF, reaffirmed his institution’s commitment to a just energy transition. He highlighted the agreement with ENEL Chile to accelerate decarbonization and cooperation with OLACDE to advance gas integration among Chile, Bolivia, and MERCOSUR.
Former Chilean President Eduardo Frei Ruiz-Tagle called for major investments and for state policies that ensure continuity and sustained growth in the energy sector.
The event concluded with a call to continue the process of regional energy integration through new stages of technical and political work, consolidating a shared vision to accelerate the energy transition and sustainable development in Latin America.
Access the document at the following link: https://www.OLACDE.org/publicaciones/integracion-gasifera-argentina-chile/
