Argentina is inviting bids for the construction of the proposed gas pipeline project from Vaca Muerta shale gas reserves in Neuquen province, Reuters reported.
The government has now launched tenders to acquire 656 km of pipelines for the construction of the first stage of the project, the cost of which is estimated at $1.6 billion.
The new pipeline will transport natural gas from Treatén, in the province of Neuquén. It will cross the provinces of Río Negro, La Pampa and Buenos Aires, to reach Santa Fe.
Argentina’s energy secretary, Darío Martínez, was quoted by the news agency as saying: “With this, we begin the process of building the most important gas transmission work in our country in four decades”.
The proposed gas pipeline project is expected to expand the South American country’s network capacity and reduce the energy deficit.
With a capacity to transport 44 million cubic meters of gas per day, the pipeline is also expected to contribute to the government’s plan to increase gas exports.
The first phase of the construction work is expected to be completed in approximately 18 months. It is expected to add an additional 24 million cubic meters of gas per day to the country’s network by winter 2023, a government source previously told the news agency.
Last year, Brazil was in talks with Argentina to build a pipeline from the Vaca Muerta shale gas reserves.
The project will see the construction of a 1,430 km long pipeline between the Vaca Muerta and Uruguaiana reserves in Brazil.
From there, another 600 km long pipeline should be built to the city of Porto Alegre, to connect to the gas distribution network in southern Brazil.