Paraguay’s Vice Minister of Mines and Energy Mauricio Bejarano indicated that large-volume purchase commitments from credible buyers would be essential to structure project financing and attract multilateral lenders. Beyond transit fees, Asunción plans to use the gas for power generation, urea fertilizer production, energy-intensive industrial development and data center supply. The government argues that existing rights-of-way, roads and bridges along the Bioceanic Route could reduce installation costs, environmental hurdles and construction timelines. A scaled-back scenario without Brazilian participation envisions a 10 million cubic meter per day pipeline oriented primarily to Paraguayan consumption.
The Paraguayan route is one element in a broader regional gas integration study led by CAF and the Latin American Energy Organization. The analysis covers approximately 6,000 kilometers of potential pipelines requiring more than USD 25 billion in investment, including the Gasoducto Norte, GasAndes, the Centro Oeste pipeline, multiple Brazil interconnections and the long-stalled Northeast Argentina pipeline. In high-integration scenarios, regional exchange could reach 35 to 40 million cubic meters per day and exceed 60 million in expansive cases. For reference, the Paraguayan project’s capacity surpasses the 27 million cubic meters per day planned for the Tratayén to San Matías Gulf LNG export pipeline in Río Negro.
The initiative revives debate over Argentina’s Gasoducto del Noreste Argentino, declared a national public interest project in 2007 by seven provinces but only partially completed. Misiones province remains without piped natural gas, prompting local stakeholders to seek participation in the emerging regional network without competing directly against the geographically distinct Paraguayan corridor. Advancement depends on regulatory and commercial frameworks Paraguay negotiates with Argentina and Brazil, and on securing anchor buyers capable of underwriting the investment over multi-decade contracts.
This article was curated and published as part of our South American energy market coverage.
