The Argentine Government has approved a $500m (506.15bn pesos) private sector initiative to enhance the gas pipeline system to connect with the Vaca Muerta shale region.
This move signals a substantial shift towards encouraging private investment in the country's energy infrastructure, which has historically been state-led.
To boost domestic energy output and address its energy deficit, Argentina is actively seeking to attract more private investment, especially under the leadership of the new libertarian president Javier Milei.
The proposed expansion by TGS aims to increase the pipeline's capacity from Vaca Muerta to Buenos Aires province. The government will oversee the tender for the project.
TGS, which presented its plan in June, has outlined a proposal to install six compressor tube sets across four plants, contingent on winning the tender.
If awarded the tender, TGS plans an additional $200m investment in a second phase to construct a 20km of pipeline and expand compression capacity within its concession area.
The energy secretariat said in a statement: "The initiative includes the expansion of the Perito Moreno gas pipeline between Tratayén (Neuquén) and Salliqueló (Buenos Aires) and work on four compressor plants.
"This will allow the company to add 14 million cubic metres of gas transportation capacity per day to the 21 million it already transports, so reaching 35 million cubic metres along the entire route."
The expansion is part of Argentina's broader strategy to boost production from the Vaca Muerta formation, considered to be the world's second-largest shale gas reserve.
This includes building the necessary infrastructure to meet local demand and, in the future, to enable liquefied natural gas exports.
In a related development, Argentina’s state oil company, YPF, aims to secure $2bn in financing by the second quarter of 2025 for its Vaca Muerta Sur pipeline project.
The project aims to transport an additional 390,000 barrels per day from the Vaca Muerta formation to a coastal export terminal in Rio Negro province, Argentina. It is being undertaken by Vaca Muerta Oil Sur, a company controlled by YPF.
