Presidents of Latin America's Southern Cone common market countries focused on integrating their gas markets as part of this week's semi-annual summit in Buenos Aires, Argentina.
Integration of power grids is in place, with countries routinely supplying each other with electricity, and leaders pledged to deepen it and add natural gas integration in a joint declaration signed on 3 July.
The bloc, known as Mercosur, includes Argentina, Brazil, Paraguay and Uruguay. Bolivia joined in 2024 and has four years to approve all bloc agreements for full membership.
A vast pipeline system exists between Argentina, Bolivia and Brazil, and Argentina's government has approved 31 contracts for gas exports to Brazil through Bolivia, the most recent on 26 June between Argentina's Tecpetrol and Brazil's Eneva.
Argentinian foreign minister Gerardo Werthein said the countries agreed to promote investment in production and transportation of natural gas.
Another step during the Mercosur meeting was an initial agreement signed by Argentina and Paraguay to study the construction of a 1,050km (630-mile) pipeline that would provide it with natural gas and a link to Brazil. Gas would come from Argentina's Vaca Muerta unconventional formation, which holds 308 trillion cf of natural gas reserves.
Paraguay president Santiago Pena said his country, Argentina and Brazil have led electricity integration for more than 50 years and "it is now time to think about new sources. The initial agreement for natural gas is an enormous opportunity for real integration."
Other top points of discussion included external plans for new trade deals.
Argentinian president Javier Milei, in charge of the meeting, called for the bloc to stop using it "as a shield to protect us" and, instead, use it as a lance for greater trade openness with the world.
He cited the conclusion of negotiations on 2 July for a trade agreement with the European Free Trade Association (EFTA), which includes Iceland, Lichtenstein, Norway and Switzerland.
Milei and Brazilian president Luiz Inacio Lula da Silva — Brazil will take over the rotating Mercosur presidency from Argentina — said Mercosur was confident it would sign a free-trade agreement with the EU by end-2025. Negotiations closed in December 2024.
The presidents also cited potential agreements with a growing list of countries, including the UAE. That agreement could be finished in 2025.
The bloc wants to work on trade agreements with Canada. Talks began in 2018, but stalled. Da Silva said Brazil's Mercosur presidency would work to restart those talks. Uruguay's president Yamandu Orsi said the bloc should also dust off the idea of a trade agreement with South Korea. Exploratory talks were held in 2017.
