Argentina: imminent auction to expand gas transportation capacity from Vaca Muerta

Argentina plans an auction to increase gas transportation capacity from Vaca Muerta. This $700 million project aims to reduce costly energy imports during winter.

Share:

Argentina is set to launch an auction to expand natural gas transportation capacity from the Vaca Muerta shale field. This initiative, announced by Energy Secretary María Tettamanti on December 2, seeks to reduce the country’s reliance on costly energy imports, particularly during winter peaks.

The project, proposed by Transportadora de Gas del Sur (TGS), Argentina’s leading pipeline operator, involves a $700 million investment. Its goal is to add 14 million cubic meters per day (m³/d) of capacity to the Perito Moreno pipeline, which connects Vaca Muerta to Buenos Aires. Currently, the pipeline transports 21 million m³/d.

Tettamanti confirmed during the Energy Day conference in Buenos Aires that the auction will be organized swiftly following the issuance of a government decree authorizing the project. According to Argentine law, any private initiative of this magnitude must go through a competitive bidding process, with TGS having the right to outbid any competitor.

Reducing Energy Imports

With average natural gas demand of 140 million m³/d and peaks exceeding 180 million m³/d in winter, Argentina must fill the gap with imports, mainly liquefied natural gas (LNG) and liquid fuels like diesel. These imports, primarily used by power plants, represent a significant financial burden.

Oscar Sardi, CEO of TGS, specified that increasing the pipeline’s capacity could save the country $700 million in winter energy imports. Approximately 70% of these savings would come from reduced LNG imports, while the remaining 30% would be in liquid fuels.

A Tight Timeline

Once the project is awarded, construction is expected to take 20 to 22 months. “We must move quickly so that Vaca Muerta producers can boost output to meet domestic demand,” Sardi said.

In parallel, TGS is planning a second expansion phase without requiring a new auction. This phase, requiring an additional $200 million investment, will increase the current system’s capacity by another 14 million m³/d.

Long-Term Export Potential

With reserves estimated at 300 trillion cubic feet (Tcf), Vaca Muerta holds far more resources than the country’s annual demand of 2 Tcf. This vast potential is driving plans for gas exports, particularly as LNG, starting as early as 2027. These initiatives aim to position Argentina as a key player in the global energy market.

Technip Energies has secured a contract to lead preparatory works for a floating liquefied natural gas unit in Africa, confirming its presence in the international gas infrastructure market.
The Slovak government is seeking guarantees from the European Union to secure its supplies as talks continue over ending Russian gas and adopting a new round of sanctions.
ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.