Argentine pipeline flow-reversal project components given construction green light

Argentine gas regulator Enargas authorized state energy company Energía Argentina to carry out work on the Gasoducto Norte flow-reversal project.

Energía Argentina has awarded contracts for the various components of the US$710mn initiative, designed to support the south-north flow of Neuquén basin gas to the country’s northwest, needed to substitute dwindling imports from Bolivia.

Work was originally due to conclude around July, to coincide with Argentina’s peak demand period, but the project is now not expected to start entering service until around August.

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In a resolution, Enargas gave the green light for construction of the 122km La Carlota-Tío Pujio link, 62km of loops parallel to the existing Gasoducto Norte pipeline and flow-reversal work at six compression stations. 

The work will permit the flow of 19Mm3/d (million cubic meters per day) north, an Enargas resolution states. It adds the gas will bolster supply to consumers and generators in the distribution footprint of Gasoducto Norte and support economic development in the region, citing the mining sector as an example. Enargas also cited the potential for exports to Chile, Bolivia and Brazil.

Transporter TGN will play a pipeline operation and maintenance role. Work will not expand system capacity but instead permit the connection of the Centro Oeste and Norte systems and flow reversal, Enargas said.

Work on other project components, involving construction of two stretches of pipeline of 50km each, got underway, local press reported. These contracts were the first awarded.

Construction of the second phase of the Vaca Muerta pipeline would facilitate increased gas flows to the north and, following the completion of further flow-reversal projects, the full substitution of Bolivian imports and growth in exports.

In April, Energía Argentina suspended until further notice the deadline for the project. The big question being asked is how the project will be financed and carried out. Energía Argentina has previously said the price of phase two is US$3.2bn and will require around 520km of 30-inch pipeline.

The first phase was executed under the public works model. It entered service last year to help debottleneck production at Vaca Muerta and substitute some imported fuels, by adding 11Mm3/d dispatch capacity. Some compression plant work is pending to achieve target capacity of around 21Mm3/d, which is expected to be reached this year.