Argentina offers tender for gas pipeline between Vaca Muerta and Buenos Aires

Last Wednesday (07/31), Argentina launched an international tender for the construction of a multi-billion-dollar pipeline to transport natural gas from the Vaca Muerta shale formation in the western part of the country to the capital Buenos Aires. Bids will open on September 12th.

The government intends for the gas pipeline to be completed by the winter of 2021 and says that by supplying the areas of Greater Buenos Aires and Rosario with domestic natural gas from Vaca Muerta, the pipeline will replace US$240m per year in liquefied natural gas (LNG) imports.

“The pipeline will help us improve the country’s trade balance and increase the production of Vaca Muerta, which means more work for Argentines, both in the area and throughout the industrial value chain,” said Secretary of Energy Gustavo Lopetegui. “It’s one of the most important infrastructure projects ahead.”

The new pipeline will extend 570km from the Tratayén processing plant in Neuquén province to the Saturn compression station in Salliqueló, Buenos Aires province, where it will extend another 470km to San Nicolás, also in the province of Buenos Aires. Estimated costs are of US$2bn.

The pipeline’s capacity will be 15 MMm3/d, or 530 MMcf/d, with the option to expand to 40 MMm3/d in future stages, depending on growth in Vaca Muerta production and future gas demand in the country.

Shale gas production increased in Argentina due to its Vaca Muerta deposit, more than tripling between January and December 2018 from 0.3 Bcf/d to 1.0 Bcf/d.

Total natural gas production grew by 5.8% in June, with Argentina producing gas at the highest rate in 11 years. The country, which suspended natural gas exports to Chile in 2007, has resumed exports and now sends seasonal shipments with an average of 4.33m cubic meters (MMm3) per day, or 153 MMcf/d, to its neighbor in the Andes. Exports throughout the year are expected to start next year.

The country also began exporting small-scale LNG exports in June, the first of its kind. LNG was produced on Exmar NV’s floating LNG production barge called Tango FLNG in the port of Bahía Blanca using piped natural gas from Vaca Muerta. The vessel has a production capacity of 500,000 metric tons, or about 0.07Bcf/d, and can produce up to eight LNG export loads per year, according to the US Energy Information Agency.

Source: Mercopress

Sharing is caring!