Argentina Gains Financing to Expand Gas Pipelines

August 2017

Argentina has secured $150 million in financing from CAF, a multilateral development bank in Latin America, to expand its natural gas transport capacity and connect more homes to the countrys gas grid in hopes of reducing consumption of more expensive alternatives, such as liquid petroleum gas.

With the financing, the country will proceed with expanding the backbone pipelines in the north and south of the country, and increasing the delivery potential of a line that brings in supplies from Bolivia.

Argentina will need more pipeline capacity as production recovers from a 10-year low of 4 MMcf/d in 2014 and a series of new projects to develop Vaca Muerta, the countrys biggest shale play, brings more gas supplies to market. According to the countrys government, gas production, which currently meets 50% of national energy needs, should reach 6.5 MMcf/d in 2025.

In May, the government called a tender for projects to expand three pipelines, with spending estimated at $168 million.