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Released July 11, 2023 | SUGAR LAND
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Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--On Sunday, the Argentine government officially inaugurated the first phase of the Nestor Kirchner gas pipeline in a politically charged event ahead of the presidential elections.
On Sunday, Argentina's president, vice president, and other authorities officially inaugurated the 573-kilometer-long Nestor Kirchner Gas Pipeline (NKGP), one of the government's flagship projects.
The natural gas pipeline can transport 11 million cubic meters of natural gas per day from Tratayen in Vaca Muerta's Neuquen province to Salliquelo in the Buenos Aires province. Moreover, the pipeline will be able to double its transport output with the start of two natural gas compressing plants in Tratayen and Salliquelo.
The energy asset will help transport Vaca Muerta's growing natural gas production; Vaca Muerta is the world's second-largest natural gas shale reservoir and the fourth-largest non-conventional oil area.
According to the government, in May, Vaca Muerta's shale natural gas output stood at 57.3 million cubic meters per day, some 11.1% more than in April and a year-on-year increase of 10.7%. Nevertheless, natural gas output at the shale formation is expected to increase in the next years as investments are poured into its development.
With the start of the NKGP, the government expects to save over US$4 billion in import substitution. Argentina is a gas importing country, especially during the winter months when demand for heating increases.
During the inauguration, the minister of economy, Sergio Massa, highlighted that in September, the government will launch the tender for the second phase of the pipeline, from Salliquelo to San Jeronimo in Santa Fe. This will allow Argentina to export Vaca Muerta's gas production to Brazil's South and ease midstream bottlenecks.
Phase I of the NKGP was built using public financing. However, the administration of President Alberto Fernandez has already started seeking investments to construct the second section of the pipeline.
The Sunday event also served as a political platform for the government to position its next presidential candidate ahead of the elections scheduled for October. As a result, Argentina's president and vice president used the opportunity to blame the previous government and the International Monetary Fund for delaying the construction of phase I of NKGP.
Moreover, the government's presidential candidate, Minister of Economy Massa, was also given fine attention as he gears up to run in the next elections.
Industrial Info is tracking more than US$6.5 billion worth of projects related to Nestor Kirchner. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports.
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 validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
On Sunday, Argentina's president, vice president, and other authorities officially inaugurated the 573-kilometer-long Nestor Kirchner Gas Pipeline (NKGP), one of the government's flagship projects.
The natural gas pipeline can transport 11 million cubic meters of natural gas per day from Tratayen in Vaca Muerta's Neuquen province to Salliquelo in the Buenos Aires province. Moreover, the pipeline will be able to double its transport output with the start of two natural gas compressing plants in Tratayen and Salliquelo.
The energy asset will help transport Vaca Muerta's growing natural gas production; Vaca Muerta is the world's second-largest natural gas shale reservoir and the fourth-largest non-conventional oil area.
According to the government, in May, Vaca Muerta's shale natural gas output stood at 57.3 million cubic meters per day, some 11.1% more than in April and a year-on-year increase of 10.7%. Nevertheless, natural gas output at the shale formation is expected to increase in the next years as investments are poured into its development.
With the start of the NKGP, the government expects to save over US$4 billion in import substitution. Argentina is a gas importing country, especially during the winter months when demand for heating increases.
During the inauguration, the minister of economy, Sergio Massa, highlighted that in September, the government will launch the tender for the second phase of the pipeline, from Salliquelo to San Jeronimo in Santa Fe. This will allow Argentina to export Vaca Muerta's gas production to Brazil's South and ease midstream bottlenecks.
Phase I of the NKGP was built using public financing. However, the administration of President Alberto Fernandez has already started seeking investments to construct the second section of the pipeline.
The Sunday event also served as a political platform for the government to position its next presidential candidate ahead of the elections scheduled for October. As a result, Argentina's president and vice president used the opportunity to blame the previous government and the International Monetary Fund for delaying the construction of phase I of NKGP.
Moreover, the government's presidential candidate, Minister of Economy Massa, was also given fine attention as he gears up to run in the next elections.
Industrial Info is tracking more than US$6.5 billion worth of projects related to Nestor Kirchner. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports.
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 validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
