TotalEnergies to Support New Gas Project in Argentina with 21-Mile Pipeline
(P&GJ) — TotalEnergies has approved the final investment decision for the Fenix gas development, located 60 km (37 miles) off the coast of Tierra del Fuego in southern Argentina.
The Fenix field will be developed through three horizontal wells, drilled from a new unmanned platform in 70 m (229 ft) water depth. The gas will be transported through a 35-km (21-mile) pipeline to the TotalEnergies-operated Véga Pleyade platform and treated onshore at the Rio Cullen and Cañadon Alfa plants, also operated by the company.
At production start-up, expected early 2025, Fenix will produce10 million cubic meters per day of natural gas (70,000 barrels of oil equivalent per day). This development represents an investment of approximately $706 million.
“With first gas less than two and a half years from FID, the Fenix project will contribute to maintaining our production levels in Tierra del Fuego and securing supply to the Argentinean gas market,” David Mendelson, senior vice president of Americas at TotalEnergies, said. “With a carbon intensity of 9 kgCO2/boe, the project will benefit from the company’s technologies in lowering the carbon intensity, such as the installation of wind farms and heat recovery systems.”
In April, the national authorities granted the CMA-1 concession, including Fenix, an extension for 10 years until April 2041. As a new gas project in Tierra del Fuego, the national authorities also granted Fenix the benefits provided for under Law 19640’s special tax regime.
Through its Total Austral affiliate, TotalEnergies operates the project with a 37.5% interest, in partnership with Wintershall Dea (37.5%) and Pan American Sur (25%).
TotalEnergies in Argentina
TotalEnergies has been operating in Argentina since 1978, through its Total Austral affiliate, and is the country’s leading international gas producer, with some 25% of production. The company’s equity share of production averaged 81,000 barrels of oil equivalent per day in 2021.
In Tierra del Fuego, alongside partners WintershallDea (37.5%) and Pan American Sur (25%), TotalEnergies (37.5%) operates the Cuenca Marina Austral 1 (CMA-1) concession, which includes the onshore Ara and Cañadon Alfa fields and the offshore Hidra, Kaus, Carina, Aries, Vega Pleyade and Fenix fields.
The company holds equity interests in nine blocks of the onshore Neuquén basin, spanning more than 300,000 net acres, of which five are operated. Since 2018, TotalEnergies has been developing the AguadaPichana Este Unconventional field, which lies in the VacaMuerta wet gas window.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments