Gas pipeline for Argentina’s future shale boom

Gas transporter TGS, controlled by Pampa Energía, has proposed an $800 million pipeline and gas treatment plant in Argentina's Vaca Muerta shale fields, aiming to address a key barrier to increasing production.

The project, subject to approval by the government of Neuquen province, could be built in a year and a half and would transport gas produced by companies including state-run YPF SA, Tecpetrol, Dow Argentina and Exxon Mobil Corp.

Argentina's President Mauricio Macri has made attracting investment to ramp up natural gas production a priority of his government, which is trying to end reliance on costly energy imports. But expanded output is limited by current pipeline capacity in the remote, Belgium-sized fields.

"Producers always say that a new pipeline will be needed for the next shale and tight gas drilling phase in Vaca Muerta," said a TGS source.

So far this year, ExxonMobil, BP Unit Pan American Energy, Wintershall, Total,and Statoil have announced investments in Vaca Muerta.

Pipelines in Vaca Muerta are currently moving 60 million m³/d (2119 ft³) of natural gas and have capacity for 75 million, oil companies say.

Read the article online at: https://www.worldpipelines.com/business-news/16102017/gas-pipeline-for-argentinas-future-shale-boom/