After the controversy over Indian pipes: in April it will be known who will build the key pipeline to export gas from Vaca Muerta
A consortium is set to announce the construction contractor for a key pipeline from Vaca Muerta in April 2024 after purchasing necessary materials from an Indian company.
Following the controversy surrounding the procurement of pipes from the Indian company Welspun, Southern Energy (SESA) is preparing to announce the contractor for the construction of a vital gas pipeline. This pipeline is crucial for transporting liquefied natural gas (LNG) from the Vaca Muerta shale formations to the Gulf of San Matías in Río Negro. The announcement is anticipated in early April and involves a total investment of $1.3 billion, indicating the project's significant scale and importance to Argentina's energy sector.
The pipeline construction is divided into four segments, with three focusing on the main pipeline, which will have a diameter of 36 inches, and the fourth dedicated to the construction of a compressor plant. These developments mark a strategic move by Argentina to enhance its natural gas export capabilities, particularly from the prolific Vaca Muerta region, which is recognized as one of the largest shale gas reserves in the world. The completion of the project is projected for the winter of 2028, aligning with Argentina’s goals to expand its energy infrastructure and boost economic growth.
As the competition heats up between Sacde-Techint and a consortium with the American Pumpco for the pipeline segments, and four local companies vying for the compressor plant contract, the outcome will have substantial implications for future investments in the Argentine energy sector. This project not only illustrates the ongoing developments in energy exports but also highlights the intricate balance between domestic needs and international market pressures.