Particle.news
Download on the App Store

Argentina Advances Major NGL Export Chain From Vaca Muerta to Bahía Blanca

Industry moves seek to turn Vaca Muerta’s unusually wet gas into exportable propane, butane and natural gasoline using Argentina’s RIGI to secure financing and permits.

Overview

  • Transportadora de Gas del Sur (TGS) is moving its US$3 billion Natural Gas Liquids (NGL) project from planning to formal steps with YPF approved as a gas supplier rather than an equity partner.
  • TGS says it has supply contracts that cover about 70% of initial processing capacity and plans to split the scheme into two companies for Neuquén processing and a 573‑km liquids pipeline to Bahía Blanca.
  • Compañía Mega inaugurated a US$260 million fractionation train in Bahía Blanca on June 7 and filed a separate RIGI application to expand pumping capacity to handle more liquids from Vaca Muerta.
  • TGS estimates the build would create roughly 4,000 direct and 15,000 indirect construction jobs and could support around US$1.2 billion a year in exports once operational.
  • What to watch next: TGS’s formal RIGI submission, financing decisions and any new partners for the two project vehicles will determine timing for pipeline, processing and export‑terminal construction.