Argentina Allows Vaca Muerta's Gas Production to Flow North

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina recently inaugurated a reversal of the Nestor Kirchner Gas Pipeline project's northern gas lines, to be called the Tio Pujio-La Carlota line. The project allows natural gas from the Vaca Muerta formation to be piped to Argentina's northern provinces--possibly to foreign markets.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can click here for a full list of detailed reports for projects related to Nestor Kirchner.

The reversion of the northern gas pipeline is part of the second phase of the Nestor Kirchner Gas Pipeline project. It includes the construction of a 76.4-mile, 36-inch-diameter gas pipeline from La Carlota to Tio Pujio, to connect the Centro-Oeste and Norte gas pipelines. It also features two loops between Tio Pujio and Ferreira, running 39.7 miles and with a 30-inch diameter.

With this, Argentina will be able to revert gas flow on the Centro-Oeste and Norte gas pipelines, allowing gas from the Vaca Muerta to be transported to the northern states. Previously, the Centro-Oeste and Norte gas pipelines transported imported gas from Bolivia to Argentina's northern and central provinces.

The reversion of the northern gas pipeline can transport 15 million cubic meters per day of gas. It represents US$740 million in investments, of which US$540 million were financed with a loan from the Latin American Development Bank (CAF). With this asset, Argentina expects to save more than US$1 billion in gas imports from Bolivia.

The final phase of the northern gas pipelines reversion will be completed with the construction of the Lumbrera, Lavalle, Dean Funes and Ferreyra compressing plants, expected to begin next year.

The increasing natural gas output from the Vaca Muerta formation is helping Argentina to reduce imports from countries like Bolivia. However, the boost of natural gas volumes is dependent on midstream expansion to evacuate that production, making the inauguration of the northern gas pipeline reversion essential for Argentina's energy expansion.

Among other projects are the construction of a major pipeline connecting Vaca Muerta to the Atlantic coast with a new liquefied natural gas (LNG) terminal, as Argentina prepares to become a key LNG player. Subscribers can click here for a detailed project report.

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