The pricing intervention stems from contracts signed under the previous Fernández administration’s Plan Gas.Ar framework, which established minimum export prices extending through 2028. Brazil’s latent gas demand presents substantial export potential for Argentine production, contingent on resolving pricing competitiveness and transit infrastructure challenges. Seven operators in Vaca Muerta and the Neuquén Basin initiated small-scale test exports in April using reversed flow through the northern pipeline network, routing gas through Bolivia’s existing infrastructure and the Gasbol pipeline to reach Brazilian markets.
Bolivia signaled potential reductions in international transit tariffs for Argentine gas crossing its territory. YPFB commercial manager Óscar Claros indicated flexibility on transit fees, acknowledging that Bolivia’s underutilized pipeline infrastructure currently provides the only viable logistical solution for initial Argentine gas deliveries to Brazil. Brazilian authorities identified Rio Grande do Sul as the primary entry point for Argentine supplies, reviving interest in completing the decades-old Uruguaiana-Porto Alegre pipeline project.
Argentina’s energy balances exhibited contrasting trends through early 2026. The energy trade balance maintained surplus territory despite declining international prices, recording a historic 7.815 billion dollars in 2025 driven by non-conventional production and reduced import dependence. Conversely, the broader commercial deficit with Brazil reached 5.224 billion dollars in 2025, marking a 19.6 percent decline from 2024 levels and maintaining pressure on domestic industrial sectors.
Argentine oil production positioned for record-breaking output in 2026, with projections exceeding 900,000 barrels daily—a 16 percent increase over 2025 volumes and 11 percent above the previous 1998 peak. Non-conventional production through Vaca Muerta fracking operations comprises nearly 70 percent of national oil output in 2026, compared to under 25 percent in 2020. Conventional oil production declined 4 percent year-on-year, while unconventional volumes surged 28 percent. Natural gas output showed marginal contraction in first-quarter 2026, down 1 percent despite ranking as the second-highest quarterly production in 17 years.
This article was curated and published as part of our South American energy market coverage.
