Argentina Plans 1,200 km Gas Pipeline to Supply Buenos Aires with Natural Gas from Vaca Muerta

Written by Paulo Nogueira

Published on 24/03/2019 at 20:45

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Currently, the Vaca Muerta producing region is the largest Gas producer in Argentina and could drive millions in the country’s economy

Argentina’s efforts to boost its natural gas production and supply are progressing through a new pipeline (1200 kms or 746 miles) and transportation and auction projects, moves that should balance the country’s production and demand. Pipeline construction contracts worth up to US $ 1.8 billion for transporting natural gas from Argentina’s largest producing region, Vaca Muerta, to Buenos Aires, may be awarded by September.

The two phases of the pipeline could move up to 40 million cubic meters of production per day, more than half of the current gas production from Vaca Muerta. The Vaca Muerta shale play will require future investments of between US $ 5 billion and US $ 10 billion per year, from US $ 4.3 billion now to accelerate its growth.

Argentina also plans monthly auctions to offer domestic gas and will launch in May a separate four-year gas auction to provide winter gas at prices indexed to imported liquefied natural gas (LNG).

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Argentina Plans 1,200 km Gas Pipeline to Supply Buenos Aires with Natural Gas from Vaca Muerta

Currently, the Vaca Muerta producing region is the largest Gas producer in Argentina and could drive millions in the country’s economy

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