The Argentine President Alberto Fernandez signed a decree on Friday that authorizes the constitution of a trust for the construction of a trunk gas pipeline from the Vaca Muerta formation and that grants its concession to Integración Energética Argentina (IEASA)said the Ministry of Energy.
The construction of the main gas pipeline from the Vaca Muerta unconventional hydrocarbon formation, one of the largest in the world, is a key work to reverse the energy deficit of the South American country.
The decree “will allow progress to be made with the construction of the gas pipeline system that will allow the evacuation of incremental gas production from the unconventional Vaca Muerta formation,” said Energy Secretary Darío Martínez.
Martínez added that “the financing for the first stage is fully guaranteed with treasury funds, and those that Law 27,605 of Solidarity Contribution granted to IEASA.”
On Wednesday, the Argentine government had issued a resolution declaring the construction of the “Néstor Kirchner” gas pipeline to be of national interest, which will start with natural gas from the province of Neuquén, where Vaca Muerta is located, and will cross the provinces of Río NegroLa Pampa and Buenos Aires, up to Santa Fe.
The gas pipeline may be vital to alleviate Argentina’s deficit public accounts, thanks to a reduction in energy imports and the fresh foreign currency that gas exports would generate.
According to the statement, the first stage of construction of the gas pipeline will involve an investment of 1,566 million dollars and its main work is the section from Neuquen to Buenos Aires.
