Argentina roundup: Gas pipeline contract, gas transporter's US$860mn reserve fund, drillship

After hitting a hurdle this year, Argentina has now awarded all blocks of work under the banner of the Gasoducto Norte flow-reversal project.  

Marking a milestone in the process, officials at state energy company Energía Argentina signed contracts with construction firm Esuco, which will carry out flow-reversal work at four compression stations.

Esuco presented the lowest bid, of 22.75bn pesos (US$26.4mn).  

Energía Argentina has signed contracts for two other blocks of work. 

All three blocks were put out to tender this year after an initial attempt to award the work in a single tranche hit a hurdle when bids came in far above the reference price.

Argentina is carrying out the project to support the flow of Neuquén basin gas north, to substitute dwindling imports of Bolivian gas and, potentially, spur exports of Argentine gas to northern Chile and Brazil. 

Work should conclude next half. 

Overall, the project constitutes second-phase work. A first stage has already been carried out directly by gas transporter TGN and a third phase would involve adding loops, boosting compression capacity and reversing flow at five more compression plants.

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Shareholders of Argentine natural gas transportation company TGS approved the creation of a 751bn-peso (US$861mn) reserve fund, a regulatory filing states.

The money is earmarked for investments, share buybacks or dividend payments.

Local gas heavyweight Pampa Energía, which holds a 26.5% stake in TGS, recently said it was interested in being involved in a project planned by state-controlled hydrocarbons firm YPF and Malaysian counterpart Petronas, citing economies of scale. At the time, the company said a TGS project – a smaller, modular configuration developed with US logistics player Excelerate Energy – may “lack the necessary competitiveness.”

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Drillship DS-17 is due to arrive in Argentina this week, local media outlet Eolo Media reported.

The vessel is tasked with drilling well Argerich-1, in area CAN-100 of the Argentina Norte basin, a license held by Equinor, YPF and Shell.

According to shipping website VesselFinder, DS-17 is due to arrive in Mar de Plata, Buenos Aires province, on Wednesday.

An environmental license establishes the drilling work window runs between December 15, 2023, and June 15, 2024.

BNamericas has contacted block operator Equinor for comment.