The reversal process of the Northern Gas Pipeline, a crucial initiative for the transportation of gas from Vaca Muerta to the north of the country, is close to completion according to official information and private sources. The work is expected to be completed by next September.
Strategic importance and objectives of the project
This work will make up for the decrease in gas production by Bolivia, which is no longer able to satisfy its own internal demand. It is the only public work that the Argentine government has decided to prioritize, intended to bring gas to seven provinces in the center and north of the country.
The transported gas will be used both for domestic consumption and for the generation of electricity by thermal power plants, thus contributing to guaranteeing the energy supply in key regions of the country.
Technical details and progress of the work
The Development Bank of Latin America granted a loan of US$540 million to finance this work, which will facilitate the distribution of Vaca Muerta’s growing unconventional gas production from the Neuquén Basin. This is vital infrastructure to drive the energy transition towards cleaner energy sources.
The reversal of the Northern Gasduct will connect the provinces of Santiago del Estero, Tucumán, Catamarca, Salta, Jujuy, La Rioja and Córdoba. Once completed, it is estimated that it will transport approximately 16 million cubic meters of gas per day.
Technical and financial advances
To date, regular line welding of the first 100 kilometers of the total 122 km of the “Federal Integration Gas Pipeline” has been completed. This stage included 4,059 welds carried out in just 41 days, thanks to the use of an automatic welding system, similar to that used in the GPNK.
Currently, the work continues with the construction of the remaining 22 km of the Gas Pipeline, as well as the installation of 62 kilometers of additional loops in the Northern Gas Pipeline, especially in the areas of Ferreyra and the City of Córdoba. In addition, the reversal of four compressor plants is being carried out, with the goal of completing all tasks by the end of August.
Financial and administrative challenges
Despite technical advances, The companies Techint and Sacde, in charge of the welding, have not yet received payment from the national State, which has an outstanding debt of approximately $14,000 million since May. This debt has been temporarily covered by loans from commercial banks.
The total budget for carrying out this work amounts to US$720 million, of which the credit granted by the Latin American Bank covers three quarters.
Highlights:
- Completion of the reversal of the Northern Gasduct by next September.
- Key work to supply the demand for gas in seven provinces in central and northern Argentina.
- Use of gas for home consumption and electricity generation.
- Financing with a loan of US$ 540 million from the Development Bank of Latin America.
- Significant advances in welding and infrastructure construction.
- Financial challenges with outstanding debts and coverage through bank loans.
