“Uruguay is the country, where today we have a really tragic situation due to the drought, we have been suffering from lack of rain practically for three years already. We need to have other energy alternatives to be able to assure our citizens’ access to affordable energy of high quality. We need to have the possibility to choose from a wide range of options, from all possible energy sources”, he emphasised.

According to the Ministry, hydropower plants account for circa 30% of electricity generation is Uruguay, wind farms – for 30%, and gas-fired power plants for another 30%. Argentina is the key gas exported to Uruguay, and so far it does not have the capacity for increasing the supplies.

The main gas reserves in Argentina are found at the giant shale gas field Vaca Muerta in Neuquen province on the Northern edge of Patagonia. The production is at the level of circa 130 mcm per day. Currently, Argentina cannot increase the production due to lack of the transportation infrastructure and lack of investment potential. In addition, the domestic demand for gas is growing in the country.