Vaca Muerta’s potential as a gas exporter to the region is largely hampered by a lack of transport infrastructure. To realize the desire to bring stable long-term volumes to Brazil, Argentina must Major works with an estimated investment value that could exceed USD 2 billionaccording to plans to accelerate TGN transporters.
The infrastructure projects analyzed aim to meet growing demands both locally and regionally. The most ambitious plans TGN is considering are: Neuquén and the southern province of Cordoba. This trunk line will be connected to the existing transport system and will be able to mobilize gas from Vaca Muerta to the center of the country and from there to the rest of the country.
The size of the project is related to the amount planned to be transported, but the following can be expected: To reach a production capacity of 20 million cubic meters per day (MMm3/day), the investment will be approximately USD 2 billion.
This new pipe will replace the already saturated Perito Moreno Gas Duct and Centro Oeste Gas Duct pipelines. From Vaca Muerta to the node formed in La CarlotaIn Cordoba, This will provide access to the northern part of the country through the recently constructed federal integrated gas pipeline.
After that, once the Northern Gas Pipeline is adequately supplied (currently limited to 15 MMm3/day, barely meeting the demand of the seven northern states), it will be necessary to decide: The route that increased capacity and connectivity to Brazil will ultimately take.
Gas export to the region
Despite this panorama of unresolved infrastructure, this country and Production companies currently occupy all export gas pipelines Except for the link with Uruguayna. Therefore, Argentine gas reaches Brazil via the Chilean Methanex, the Concepcion region, the Santiago region, northern Chile, Bolivia, and then Uruguay via the Cruz del Sur gas duct.
In other words, what were the pipelines that had to be shut down at some point due to various circumstances? Today they are all open and workingwhich in itself is good news for the system.
However, we also study TGN Low volume scenario It ensures flexibility and significantly reduces the amount of capital required compared to the original project (15 or 10 MMm3/day). The strategic axis of this initiative is Brazil’s interest in diversifying its energy matrix and promoting industry with more economical fuels.
It’s Brazil, especially the southern part of the country. Losing Bolivia as a traditional supplier And this increased reliance on associated gas makes the Vaca Muerta Basin highly attractive as a stable, long-term source of supply. Currently, Argentina already exports seasonal quantities to Brazil, but the aim is to reach a solid contract that requires new infrastructure.
from Gas export resumed at the end of October According to various analysts from both countries, the supply to the region’s main trading partners is more than 300,000 square meters per day, far below the potential demand of at least 15 MMm3/day.
How will we raise the funds for the US$2 billion construction project?
But the key to financing the project will not depend solely on Brazilian demand. TGN explains that the “trigger” for building a new gas pipeline is likely to be: Local demand, especially demand related to thermoelectric generation.
This includes: Electricity regulator adapts rules This is to give power producers the confidence to purchase reliable transport capacity for at least 15 years.
Regarding the export route, There are three possible routes for the gas industry, but the one that makes the most sense geographically is through Bolivia. However, this path is blocked by what are considered “excessive price demands.” Use of pipelines by neighboring countries.
To illustrate the imbalance, it was stated that Bolivia requires US$1.9 per million BTU. Over 25 years of pipeline transportation experienceif the transportation fee in Argentina for a similar distance is between USD 0.40 and USD 0.50, i.e. 4 times less.
Paraguay player covered in gas
Faced with the obstacle of Bolivia, the other option is southern Brazil. Closing the circular gas pipeline between Uruguayana and Porto Alegreor via Paraguay. This last option, in addition to being a transit route, Paraguay is interested in gas consumption for thermal power generation and fertilizer plants in the coming yearsa possibility Argentina needs to consider.
any of these options Need to discuss new investments with potential partners An exception is the alternative country of Bolivia, which already has an operational and depreciated gas pipeline network, which has been the export route for Vaca Muerta gas since March.
Despite regulatory and cost challenges, the industry is exhibiting moderate optimism and a sense of urgency. Once local power generation companies are in a position to purchase solid transmission capacity, Project could start within 6-8 months.
About The Author
