At a glance: Argentine oil pipeline expansion projects

Argentine oil production climbed 11.1% to 717,100b/d last year.

For the whole of 2024, output was 256Mb, the most since 2003.

Growth is being driven by producers in the Vaca Muerta shale play, which accounted for 54.9% of total output.

Appetites are being whetted by a government deregulation drive and export opportunities. 

To support output growth, transport capacity between the Neuquén basin – which hosts Vaca Muerta – and the Atlantic coast is being expanded. 

Midstream concessionaire Oldelval has led the charge, expanding dispatch capacity between the basin and the coast of Buenos Aires province. The country’s biggest hydrocarbons player, state-controlled YPF, is spearheading another major project – Vaca Muerta Sur. This will link the basin to the coast of Río Negro province.   

Incentives are being sought for the second and major phase of Vaca Muerta Sur under the Rigi investment promotion regime. 

Data from the federal energy department shows that last year Argentina exported around 44,800b/d to Chile. In terms of dispatches via Buenos Aires, Oldelval transported 1.45Mm3 in December, or around 295,000b/d, along the export-focused Allen-Puerto Rosales duct.

Argentina's biggest Vaca Muerta players plan to keep upping production this year. 

Neuquén basin oil transport projects

Project: Oldelval Duplicar
Status: Expected to be fully operational in 1Q25
Capacity: 540,000b/d, up from around 225,000b/d.
Capex: US$1.20bn.

Project: Vaca Muerta Sur
Status: First phase due for completion in 1H25. Second phase (including a terminal and is awaiting funding) expected to enter service in 2026.
Capacity: 180,000b/d in 2H26, 550,000b/d in 2027 and 700,000b/d possible post-2028.
Capex: Around US$2.50bn

Project: Duplicar Norte
Status: Tendering. Construction may start mid-2025, based on past comments.
Capacity: Up to 572,400b/d
Capex: US$838mn

From 2027, if Vaca Muerta Sur is brought online as planned, overall Neuquén basin dispatch capacity – taking into account refinery offtake and oil piped to Chile and to the Atlantic – could climb to over 1.1Mb/d, according to a YPF presentation last year.

Oldelval is mulling boosting capacity via a further Duplicar expansion.