The Argentine government agreed with the National Development Bank of Brazil (Bndes) financing for US$ 689 million for the construction of the second section of the President Néstor Kirchner Gas Pipelineannounced this Monday the Secretary of Energy, Flavia Royón.
He did so at the closing speech at the lunch for Oil Day, organized by the Argentine Institute of Oil and Gas (IAPG) and summons representatives from the entire sector.
The official highlighted in her presentation that the Néstor Kirchner gas pipeline “It is a fundamental and historical work, which will increase the production of Vaca Muerta by expanding the gas transportation capacity by 30%”.
In this way, the work will allow gas to reach consumption centers and deepen the possibility of exporting from production surpluses.
The development of Vaca Muerta, the offshore and the entire hydrocarbon sector is essential for Argentina. It has the potential for our country to go from a negative balance to a positive balance of 8 billion dollars in 2026. pic.twitter.com/Fn3MbiYQQT
— Flavia Royon (@FlaviaRoyon) December 12, 2022
Royón ratified that “The first stretch (from Tratayén to Salliqueló) will end in June 2023 and will mean savings of USD 2.2 billion in imports and subsidies.”
But the official announced that “regarding the second section of the Néstor Kirchner Gas Pipeline, we have obtained financing for US$ 689 million from the National Development Bank of Brazil (BNDES) and US$ 540 million from CAF.”
“This work will be key to achieving energy self-sufficiency, deepening regional exports and developing LNG projects“, he highlighted when pointing out that “the most conservative calculations allow us to project savings of US$ 20 million per day, with which the investment can be recovered in a year.”
From the National Government we will continue working to promote investments, exports and transport infrastructure, such as the Néstor Kirchner Gas Pipeline and the Vaca Muerta oil pipelines, to continue increasing production and achieving self-sufficiency. pic.twitter.com/pzDb6jmIu1
— Flavia Royon (@FlaviaRoyon) December 12, 2022
Timeline on the Gas Pipeline
In recent weeks it was learned that the teams from Energía Argentina (Enarsa), the Argentine and Brazilian Economy Ministries, the foreign ministries and the Brazilian National Development Bank (Bndes) were advancing in negotiations to finalize the financing of the second stage of the work.
This stage of the work will connect the towns of Salliqueló in the province of Buenos Aires with San Jerónimo in Santa Fe, a 583-kilometer route that will be covered with a 36-inch pipeline.
Enarsa had made the call for Public Tender on September 5 for the elaboration of the extended basic engineering of the second stage of the GPNK.
The works in the second stage will expand the capacity of the national trunk gas pipeline transportation system by 25%, adding value to the Vaca Muerta reserves.
In its first stage, the GPNK will increase transportation capacity by 24 million cubic meters of gas per day to replace fuel imports and will extend over 573 kilometers with an estimated investment of US$1,500 million.
