MercoPress. South Atlantic News Agency

Paraguay wants to build a “Panama Canal” of natural gas

Albertini launched the proposal during an event in Chile

During the 10th Energy Week of the Latin American Energy Organization (OLADE) in Santiago (Chile), Paraguay unveiled an ambitious proposal to construct a bi-oceanic gas pipeline that could reshape the continent's energy landscape.

Julio Albertini, Director of Hydrocarbons at Paraguay’s Ministry of Energy, introduced the project, describing it as a potential “Panama Canal” for Latin American gas. The pipeline would facilitate the flow of natural gas between key markets, connecting —for example— production from Paraguay’s Chaco region to Brazil’s industrial hubs.

The primary goal is to meet Brazil’s surging industrial energy demand, which Albertini characterized as “a continent unto itself” in terms of consumption.

As Brazil and Argentina expand their gas production —driven by the Presal fields and Vaca Muerta, respectively— Paraguay aims to serve as a pivotal transit and coordination point for regional distribution.

Inspired by regulatory frameworks in Argentina, Chile, and Brazil, the plan seeks to navigate legal and technical challenges. Albertini noted that advanced studies were already in progress to align the project’s infrastructure with its strategic scale.

Beyond regional integration, the pipeline is envisioned as a step toward elevating South America’s global energy profile. “Latin America will emerge as a global leader in energy, food, and critical minerals,” Albertini affirmed.

Through this initiative, Paraguay aspires to transition from a consumer nation to a central energy corridor—driving economic growth and enhancing energy security across the continent in the long run.