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He also stated that drilling rigs might have to If this project is given a green light, he said,
be imported for the upstream portion of the construction will be expected to start in late
scheme, since Argentina lacked the specialised 2023 or early 2024.
equipment needed to optimise development Since Argentina is sitting on one of the
operations. world’s largest shale gas reserves, potential
Additionally, he mentioned other infrastruc- investors are waiting for the country’s govern-
ture facilities, saying that a new oil terminal ment to pass legislation designed to promote
and a two-phase gas pipeline from the Vaca LNG and hydrogen production, the YPF head
Muerta region to Northern Argentina would be continued. “We see that law as a very good first
required to boost Argentina’s oil and gas output step [to create] conditions in the future for other
and exports. businesses,” he stated. This law is an “absolutely
Moreover, he said, YPF is slated to take an necessary” step toward boosting investment, he
FID on a midstream project that will connect added.
an oil pipeline originating in the Vaca Muerta Buenos Aires is expected to submit draft leg-
region to a terminal and a monobuoy that can islation to the National Congress sometime later
load supertankers for exports. this month, Reuters noted. ™

CAF loan funds to cover $540mn of

new gas pipeline’s cost in Argentina

ARGENTINA’S government said last week that eventually an exporter to the world market. Cur-
it had secured an $840mn loan from the Devel- rently, the country imports gas from Bolivia to
opment Bank of Latin America (CAF) for the meet its own needs.
funding of multiple projects, including the con- According to previous reports, the new
struction of the President Néstor Kirchner Gas pipeline will carry a price tag of $1.5bn. It will
Pipeline (PNKG). follow a route from Tratayen, a site in Neuquen
The credit deal was reportedly sealed during Province, to Salliquelo, a town in Buenos Aires
a meeting between Argentina’s Economy Min- province, and will have a throughput capacity of
ister Sergio Massa and CAF’s board of directors 24mn cubic metres per day.
in Santiago, Chile. The Vaca Muerta shale formation is believed
More than half of the loan, or $540mn, will to hold 300 trillion cubic feet (8.5 trillion cubic
be allocated to the pipeline, which will be used metres) of shale gas. Meanwhile, Argentina’s
to transport gas from the Vaca Muerta shale domestic consumption was estimated last year
basin to more heavily populated parts of the to amount to just 1.5-1.6 tcf (42.48-45.31bn
country. According to the Argentinian author- cubic metres) per year. ™
ities, PNKG, also known as the Northern Gas
Pipeline, will serve as a crucial source of gas sup-
plies for residential and industrial consumers in
Buenos Aires and other major cities in northern
Argentina.
Meanwhile, the remaining $300mn of
the loan will be used to cover the cost of pro-
grammes that assist disabled people. The funds
are due to be disbursed immediately, according
to press reports.
In a statement issued after the conclusion of
negotiations on loan deal, Massa said that the
pipeline project was in line with the govern-
ment’s efforts to prepare for the switch to renew-
able energy and to take advantage of the world’s
second largest unconventional hydrocarbon
reserves.
He also stated that Argentina hoped that its
shale gas could benefit neighbouring states such
as Chile, Bolivia, Brazil and Uruguay as well as
domestic consumers.
The PNKG project is designed to help make
Argentina self-sufficient in gas supplies and The pipeline will have a capacity of 24 mcm per day of gas (Image: Telam)

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