Argentina has inaugurated the first phase of its natural gas pipeline, built to transport natural gas from the Vaca Muerta shale formation to Santa Fe province via Buenos Aires province. The first phase completion adds 11 million m3 of gas per day. The pipeline’s operations will help Argentina get to a net zero energy balance in 2024 and a surplus in 2025.
Jul 12, 2023
Argentina has reportedly inaugurated phase one of a gas pipeline, with the strategy to transport natural gas from the Vaca Muerta shale formation to Santa Fe province via Buenos Aires province. Vaca Muerta has the world’s second-largest unconventional gas reserves and the fourth-largest oil reserves, and the new pipeline is expected to uplift Argentina’s gas supplies and reduce costly imports. In 2022, Argentina faced a USD 5 billion energy trade deficit due to high energy consumption, which put Argentina in the position to import energy. The completion of the first phase of the pipeline adds 11 million m3 of gas per day, with capacity doubling once compression plants are installed.
Mr. Sergio Massa, Economy Minister of Argentina and a presidential candidate, emphasized on the economic benefits of the pipeline as he mentioned that it would change the energy matrix of Argentina. The next phase of the pipeline, extending to San Jeronimo in Santa Fe province, is expected to be tendered in September and completed by March or April 2024, increasing transportation capacity by 44 million m3 per day, allowing for the importation of diesel and liquefied natural gas. As per Argentina’s official estimates, the pipeline’s operations will help the country get to a net zero energy balance in 2024 and a surplus in 2025.