Background on Vaca Muerta and its Significance
Vaca Muerta, located in Argentina’s western region, is the world’s second-largest unconventional gas reserve. The Argentine government aims to harness this resource to address energy deficits, establish the country as an energy exporter, and bolster foreign currency earnings. However, insufficient infrastructure has hampered the increased extraction of these fuels from the reservoirs.
Contract Details and Investment
The Argentine government has awarded Transportadora de Gas del Sur (TGS) the contract to extend the Perito Moreno gas trunkline from Vaca Muerta’s unconventional hydrocarbon formations to Buenos Aires. This initiative includes new pipeline segments between Tratayén (Neuquén) and Salliqueló (Buenos Aires), as well as three compressor plants with a combined 90,000 horsepower (HP) and complementary works within the TGS system. These improvements will facilitate gas supply to Greater Buenos Aires and the Litoral region.
TGS’s $700 million investment will increase the Perito Moreno gas trunkline’s transport capacity by 14 million cubic meters per day (Mm3/d), raising it from 21 Mm3/d to 35 Mm3/d. This expansion will involve drilling approximately 20 new wells in Vaca Muerta.
Benefits and Impact
The project’s expansion of gas transport capacity will result in over $700 million in savings on energy imports, according to the Energy Secretariat. Oscar Sardi, TGS’s CEO, emphasized the project’s importance for Vaca Muerta’s development, stating that it will provide a solution for incremental gas production evacuation and connect it to the consumer market.
Sardi expressed pride in promoting this project, highlighting its numerous benefits for Argentina’s energy supply.
Key Questions and Answers
- What is Vaca Muerta? Vaca Muerta is a significant unconventional gas reserve located in Argentina’s western region, ranking second globally.
- Why is Vaca Muerta important for Argentina? The Argentine government aims to leverage this resource to address energy deficits, establish the country as an energy exporter, and strengthen foreign currency earnings.
- Who was awarded the contract to extend the gas trunkline? The Argentine government awarded Transportadora de Gas del Sur (TGS) the contract to extend the Perito Moreno gas trunkline.
- What does the $700 million investment cover? The investment covers new pipeline segments, compressor plants, and complementary works within the TGS system to improve gas supply to Buenos Aires and the Litoral region.
- How will this project impact energy imports? The project’s expansion of gas transport capacity is expected to result in over $700 million in savings on energy imports.
