Argentina's ENARSA Signs Deals for Construction of Part of Norte Gas Pipeline Reversal

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentine state-owned gas company Energía Argentina Sociedad Anónima (ENARSA) said it has signed a deal with UTE Techint-SACDE for the construction of two pipeline segments as part of the flow reversal of the Norte Gas Pipeline. The sections account for about 100 kilometers, connecting the Centro-Oeste gas pipeline with the Norte pipeline in the Cordoba province. The new pipeline segments will have a diameter of 36 inches.

The reversal of the Norte gas pipeline was started by the previous Argentine government as a complementary project to the Nestor Kirchner gas pipeline, which was inaugurated last year. The reversal project aims to transport natural gas from Vaca Muerta to the northern provinces of Cordoba, Tucuman, La Rioja, Catamarca, Santiago del Estero, Salta, and Jujuy.

Industrial Info is tracking 11 projects that stem from the Gasoducto Norte pipeline reversal, worth US$268 million. Subscribers to Industrial Info's Global Market Intelligence Oil & Gas Pipeline Project Database can click here for a list of detailed project reports.

The project will be done by constructing some pipeline sections and loops, such as the ones licensed to UTE Techint-SACDE, and the reversal of four compressing plants. The pipeline was initially constructed to transport Bolivian natural gas south to Argentina. The Argentine government now wants to reverse the flow of the pipeline from the nation's Vaca Muerta region to the northern provinces.

Bolivia's natural gas production has been decreasing in recent years, limiting the supply to regional markets such as Argentina and Brazil.

Argentina's development of Vaca Muerta, the world's second-largest shale reservoir, has opened up the opportunity to supply the domestic market from a local source. The shale play faces significant midstream limitations, so constructing pipeline connections and gas-processing plants will be essential to ramp up production in Vaca Muerta.

Continuation of the reversal of the Norte Gas Pipeline had been halted following the election of President Javier Milei, who froze all public infrastructure spending. Milei is trying to incentivize private investments in public works and developments.

Argentina seeks to develop its hydrocarbon industry to reduce its dependence on imports, especially on natural gas, and increase exports to bring in foreign currency. The development of midstream assets to connect Vaca Muerta with the internal market and new export terminals will be key for this goal.

Besides the reversal of the Norte gas pipeline, YPF, the state oil company, also wants to build an oil pipeline from Vaca Muerta to the Atlantic coast, while the government will seek to start the construction of the second section of the Nestor Kirchner gas pipeline.

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