Argentina's Nestor Kirchner Gas Pipeline Starts to Fill

On June 21, Argentine government authorities traveled to the Vaca Muerta shale reservoir to be present for the filling of the Nestor Kirchner gas pipeline. This midstream energy asset is expected to help move Vaca Muerta's rising natural gas output while saving Argentina billions of dollars in imports.

According to the Argentine energy ministry, the filling started from kilometer 0 to kilometer 29 in Tratayen, Vaca Muerta. The filling of the entire pipeline is expected to take between 15 and 20 days. The goal is to fill the pipeline from Tratayen in Vaca Muerta to Salliqueo in the Buenos Aires Province in time for the pipeline's inauguration on July 9.

Concurrently, the pipeline will undergo cleaning and pressurization.

Flavia Royon, Argentina's energy secretary, said that the process "is the beginning to turn around our energy balance and decrease dependency on energy imports and exporting. Today, Vaca Muerta had no way to evacuate production or how to grow."

Investments in Vaca Muerta's midstream capacity are crucial to developing the industry in the shale reservoir as it continuously increases its oil and gas output.

According to the energy ministry, besides helping Vaca Muerta evacuate its production, the start-up of phase I of the pipeline will save the government US$1.7 billion due to lower imports.

Argentina imports liquefied natural gas (LNG) during the winter months, though with higher natural gas production from Vaca Muerta and better transport systems, the government expects to lower its import dependency.

Phase I of the Nestor Kirchner gas pipeline is a 573 kilometer-long (356 miles) asset that will transport natural gas from Tratayen in Vaca Muerta to Salliqueo in the Buenos Aires Province. The pipeline can transport 11 million cubic meters of natural gas per day. Two compressor plants, also expected to be inaugurated this year, will help boost that capacity to 21 million cubic meters per day. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can?click here?for related reports.

Meanwhile, phase II of the project will connect the Salliqueo station to San Jeronimo in the Santa Fe province, allowing Argentina to export natural gas to countries such as Brazil and Chile.

The government is seeking to raise funds to construct the second section of the pipeline.

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