According to a statement from Enarsa, this ninth addendum will allow supply the central and northern area of Argentina with up to 4 million cubic meters per day (MMm3/d) according to internal demand, while the Government of Javier Milei finalizes the Reversal of the Northern Gasduct.
“This project is estimated to be in operation on September 15, allowing the northern provinces to be transported with an additional 5 MMm3/day to the current ones and in a second stage another 4 MMm3/day,” Enarsa said in a statement.
Once completed, Argentina hopes to take advantage of the unconventional gas production from Vaca Muerta in the south and distribute it to the north of the country. The total budget for the work amounts to 720 million dollars, of which 540 million come from a loan from the Development Bank of Latin America and the Caribbean, which seeks to support the energy transition.
Although Bolivia announced last March that it would end its natural gas export commitments to Argentina in June due to a alleged shortageYPFB reported in April that, although production has decreased, it is still enough to meet domestic demand and the current contracts with Argentina and Brazil.
Recently, it was announced the incorporation of a second set of fracture to accelerate plans in the vast Vaca Muerta unconventional hydrocarbon formation in southwestern Argentina.
To this end, the strategic link with an American firm was extended to import to Argentina a new fracture set.
This equipment will operate in the Vaca Muerta blocks, a formation that constitutes the world’s second largest reserve of unconventional gas and the fourth largest oil reserve of this type. The company, whose shares are listed on the New York and Mexico stock exchanges, plans to reach production of 85,000 barrels of oil equivalent per day (boe/d) in the fourth quarter of 2024.
The second fracture set is expected to be incorporated into operations in the second half of 2024providing flexibility to accelerate the plan and positioning the company to exceed its 2025 and 2026 production goals.
“A fundamental part of our drilling and completion plan in Vaca Muerta is the incorporation of equipment with the highest technology, which allows us to be more efficient when it comes to achieving our production objectives. The incorporation of a second fracture set will give us greater flexibility to further accelerate our plan,” said Juan Garoby, co-founder and director of an oil company involved in the project.
The oil company, the second largest producer of unconventional oil in Argentina, plans to put 138 new “shale oil” wells into production between 2024 and 2026, with the objective of reaching production of 100,000 boe/d in 2026. By 2030, the company It has been proposed to reach a production of 150,000 boe/d.
