Argentina has approved a significant investment to support the construction of a new pipeline linking the Vaca Muerta shale formation to a port in the Rio Negro province. The $3.0 billion project has been authorized for YPF, the country’s state-controlled oil company, which will receive government funding for the initiative.
The country’s Minister of Economy, Luis Caputo, announced that the new pipeline is expected to generate over $15.0 billion in annual oil exports. This move is part of Argentina’s broader strategy to increase its status as a net energy exporter, with YPF collaborating with major partners such as Shell, Chevron, Vista, and Pan American Energy. These companies are all involved in projects connected to the vast resources of the Vaca Muerta shale formation.
The pipeline will span 437 kilometers and is expected to require approximately 150,000 metric tons of steel plates for its construction. With a diameter of 30 inches and a thickness of 18 centimeters, this infrastructure project is a key step toward unlocking the potential of Vaca Muerta.
Vaca Muerta is recognized as the world's second-largest shale gas reserve and the fourth-largest shale oil reserve, making it a crucial asset for Argentina’s energy future and its economic growth.
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