Argentina’s state-run oil company, YPF, has confirmed the start of construction on the second section of the Vaca Muerta Sur (VMOS) pipeline, following the securing of $3.0 billion in funding for the project.
The Vaca Muerta Sur pipeline will connect the shale gas and oil reserves of Vaca Muerta in Neuquén to the Punta Colorada port on the Atlantic Ocean, facilitating Argentina's oil and gas exports. The infrastructure is expected to significantly boost the country’s export capacity, with annual export estimates reaching $15 billion.
The first section of the pipeline, covering a distance of 130 km, is set for completion in the first quarter of 2026, while the second section, which extends for 473 km, is expected to be finished in the second half of 2026.
The supply contract for the pipes has been awarded to Tenaris, a subsidiary of the Techint group. The pipes will be produced using steel plates of API 5L X70 grade, with a wall thickness of up to 17.5 mm. For the second section, an estimated 150,000 mt of plates will be required. This ambitious project is set to play a key role in boosting Argentina’s energy export capabilities.
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