Roundup: TGS Rigi application, Pluspetrol-YPF outlay, Río Negro shale wells

Rigi

Argentine midstream gas player TGS is preparing to apply for Rigi investment incentive regime benefits for a gas transport capacity expansion project.

The US$500mn initiative, unveiled earlier this year, is one of two designed to increase transport capacity by a total of 14Mm3/d (million cubic meters per day) by mid-2026.

Rigi paperwork could be filed with authorities in around a month, TGS CFO Alejandro Basso told the company’s 3Q24 results call.

Rigi establishes a series of tax and exchange rate benefits and stable rules of the game for 30 years. Officials recently published procedures for projects and providers that want to adhere.

Work involves four new compression plants along the Tratayén-Salliqueló stretch of the Vaca Muerta pipeline, which is the 573km first phase.

The project was presented by TGS for consideration under the hydrocarbons law and the private initiative model. 

The government is due to call for bids from TGS and other interested parties within the next two weeks. TGS has first refusal and an award decision is expected by around the turn of the year.  

Another major TGS project on the drawing boards is a US$2.5bn natural gas liquids facility. Associated engineering work is due to be finalized in March, investors were told. The project is geared to processing associated gas.

La Calera

Argentine drillers Pluspetrol and YPF forecast investment of up to US$9bn at Vaca Muerta block La Calera through 2027, local media outlet Energía On reported.

Expected outlay by Pluspetrol and YPF at La Calera is US$900mn for 2024.

Pluspetrol, which has secured Vaca Muerta shale assets of US major ExxonMobil, recently completed construction of the first phase of a processing facility, supporting production of 11Mm3/d of gas and 30,000b/d oil. A compression project to boost gas processing capacity to 14.5Mm3/d is due for completion in May 2025, Energía On said, citing comments from Pluspetrol Argentina CEO Julián Escuder.

By the end of 2025, work is due to start on a further expansion that will support production of up to 24Mm3/d gas and 60,000-70,000b/d crude. This expansion is due online by early 2027.

La Calera is among the biggest gas blocks by output in Vaca Muerta. 

Río Negro

Upstream firm Phoenix Global Resources connected three oil wells that target Río Negro province’s portion of the Vaca Muerta unconventional hydrocarbons formation.

The Vaca Muerta wells, in area Confluencia Norte, are the first of their kind in Río Negro. Results are due this month, Energía On said.

Confluencia Norte had been auctioned by Río Negro last year. Kilwer holds the license. 

Neuquén province sits on the bulk of the formation and is where most upstream investment is flowing.