Argentina gas roundup: Pipeline operation-maintenance, financing-construction tenders

Pipeline operation and maintenance

Argentine state energy company Energía Argentina put out to tender a contract to operate and maintain part of the Gasoducto del Noreste Argentino, or GNEA, pipeline system.

The contract corresponds to an infrastructure section in Formosa province known as Formosa-EPC 2 & 4.

Bids are due by June 26, according to information published in the government’s official gazette.

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Financing and construction

Argentina’s government wants the private sector to finance and carry out the second phase of the two-phase Vaca Muerta pipeline project, Bloomberg reported. 

This phase is a multibillion-dollar initiative designed to further debottleneck production in the Neuquén basin, substitute imported hydrocarbons and eventually help support exports.

Required associated outlay on the second phase – between Santa Fe and Buenos Aires provinces – is at least US$2.5 billion and the target is achieving completion by March 2026, it was reported. 

Federal energy chief Eduardo Rodríguez Chirillo was reported as saying the role of the State would be as facilitator of the work, which should ramp up overall pipeline capacity to around 40Mm3/d (million cubic meters per day). 

A tendering process is due to launch in October, with award decisions scheduled for December.

An associated objective is establishing a third gas transporter, which would be called Transportadora de Gas del Centro. Two currently operate: TGS and TGN.

The previous government had launched an associated phase two tender, which was put on hold.

Energía Argentina has previously said the cost of phase two was over US$3bn and would require around 520km of 30-inch pipeline.

The first phase is operational. Compression plant work needs completing to reach planned capacity of around 21Mm3/d.