Argentina's RIGI Backs Gas Pipeline, POSCO Lithium Project

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Two new projects have been approved under the RIGI, totaling US$1.8 billion. The San Matias pipeline will extend 473 kilometers to transport Vaca Muerta's gas to the Argentine coast, while Sal de Oro will further expand Argentina's role in the lithium sector.

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San Matias Natural Gas Pipeline

Argentina's Minister of Economy, Luis Caputo, said on X that the San Matias gas pipeline, part of the Southern Energy Project, and POSCO's expansion of Sal de Oro lithium project were approved under Argentina's Incentive Regime for Large Investments (RIGI).

Created by the government of Javier Milei, the RIGI provides fiscal and legal benefits for companies investing in projects in Argentina that are valued at more than US$200 million. Since its creation, more than 35 projects have submitted applications to the RIGI and over a dozen have been approved.

The San Matias gas pipeline extends from Tratayen to San Antonio for 473 kilometers with a diameter of 36 inches and has the capacity to transport 27 million cubic meters per day (m3/d). Industrial Info Resources offers more information on this project in its Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in a project report.

The pipeline will connect Vaca Muerta with the Argentine coast and transport the natural gas that will be processed for export through the Southern Energy project (SESA), which will have a capacity to export up to 6 million tons of LNG per year through two floating liquefaction facilities. Readers can learn more about SESA from a list of project reports.

According to Industrial Info Resources data, investments in the pipeline project will total about US$1.3 billion, while the SESA development will enable exports worth US$2.5 billion annually.

Besides SESA, the Argentina LNG project, led by YPF, is aimed at exporting 12 million tons of liquefied natural gas (LNG) per year from Vaca Muerta's natural gas production. The companies involved are still waiting for a final investment decision expected during the second half of this year.

Meanwhile, other relevant natural gas infrastructure include the Perito Moreno gas pipeline, inaugurated in 2023, the reversal of Gasoducto Norte, completed in 2024, as well as the Transportadora de Gas del Sur (TGS) proposed liquified natural gas project, worth US$3 billion.

Amid severe disruption to shipping through the Strait of Hormuz and broader supply concerns linked to the conflict in the Middle East, Argentina could strengthen its position as a medium-term LNG supplier if its planned export projects are completed and Vaca Muerta's output continues to increase.

Sal de Oro Lithium Project

The second project entering the RIGI is POSCO's expansion of Sal de Oro lithium project in the Catamarca and Salta provinces. The state-owned company seeks to produce 23,000 tonnes of lithium carbonate equivalent (LCE) per year, reaching exports worth US$300 million per year.

Investments in the Sal do Oro expansion total roughly US$839 million, according to Industrial Info Resources data. Readers can learn more from a detailed project report.

Argentina already is one of the world's largest lithium producers, with an output of 23,000 tons of lithium content in 2025, according to the United States Geological Survey (USGS). Argentina also contains some of the world's largest lithium resources estimated at 28 million tons of lithium content, based on USGS analysis.

Other major projects submitted and approved for the RIGI include Rio Tinto's Rincon project, the Cauchari-Olaroz expansion project and the Hombre Muerto West lithium project.

Industrial Info Resources is tracking about 80 lithium-mining projects in Argentina, totaling more than US$24 billion of investment. Readers can learn more from a detailed list of project reports.

Key Takeaways

• Two new projects have entered the RIGI, totaling US$1.8 billion.
• The Tratayen to San Antonio pipeline will be able to transport 27 m3/d of natural gas through 473 km.
• The Sal de Oro lithium expansion project will have a capacity of 23,000 tons of LCE per year.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).