Massa noted that the pipeline project will eventually allow exports to northern Chile, central Brazil and Bolivia. "This will make it possible to begin thinking of Argentina as an energy exporter," said Massa, adding the project will also help supply the mining sector and northern Argentina at prices six times cheaper than current costs. Argentina is looking to ramp up Vaca Muerta production, which analysts believe will help reverse a longstanding energy deficit. The development of Vaca Muerta, which has the world's second-largest shale gas reserves, comes as central bank reserves have dwindled as the economy slumps due in large part to triple-digit inflation. A core stretch of the pipeline connecting Vaca Muera with Buenos Aires province is set for completion in 40 days, while a second leg will reach Santa Fe province next year. "Today, we are gaining energy sovereignty," President Alberto Fernandez proclaimed during a ceremony touting progress on the pipeline. The outgoing leftist leader hailed total energy savings of between $2 billion and $3 billion already achieved. (Reporting by Eliana Raszewski; Writing by Sarah Morland; Editing by David Alire Garcia and David Gregorio)
By Eliana Raszewski
BUENOS AIRES, May 12 (Reuters) - Argentina's government
will next week call for bids to reverse the flow of natural gas
on a major pipeline designed to transport Vaca Muerta production
to the north and center of the country, Economy Minister Sergio
Massa said on Friday.
Vaca Muerta is a massive shale formation in western
Argentina seen as key to boosting the South American country's
gas supplies and lessening the need for pricey imports.
Interested firms will be able to bid on work converting
existing pipelines that carried imported gas so that they now
transport growing domestic supplies in the other direction.
Work on the Northern Gas Pipeline is set to be completed
next year while saving $2 billion annually in energy imports,
replacing supplies from Bolivia where production has been
faltering.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.