Argentina Seeking New Vaca Muerta Pipeline Work to Move Local Gas Supply
(Reuters) — Argentina's government will next week call for bids to reverse the flow of natural gas on a major pipeline designed to transport Vaca Muerta production to the north and center of the country, Economy Minister Sergio Massa said on Friday.
Vaca Muerta is a massive shale formation in western Argentina seen as key to boosting the South American country's gas supplies and lessening the need for pricey imports.
Interested firms will be able to bid on work converting existing pipelines that carried imported gas so that they now transport growing domestic supplies in the other direction.
Work on the Northern Gas Pipeline is set to be completed next year while saving $2 billion annually in energy imports, replacing supplies from Bolivia where production has been faltering.
Massa noted that the pipeline project will eventually allow exports to northern Chile, central Brazil and Bolivia.
"This will make it possible to begin thinking of Argentina as an energy exporter," said Massa, adding the project will also help supply the mining sector and northern Argentina at prices six times cheaper than current costs.
Argentina is looking to ramp up Vaca Muerta production, which analysts believe will help reverse a longstanding energy deficit.
The development of Vaca Muerta, which has the world's second-largest shale gas reserves, comes as central bank reserves have dwindled as the economy slumps due in large part to triple-digit inflation.
A core stretch of the pipeline connecting Vaca Muera with Buenos Aires province is set for completion in 40 days, while a second leg will reach Santa Fe province next year.
"Today, we are gaining energy sovereignty," President Alberto Fernandez proclaimed during a ceremony touting progress on the pipeline.
The outgoing leftist leader hailed total energy savings of between $2 billion and $3 billion already achieved.
Related News
Related News

- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments