The national government reached an agreement with the Andean Development Cooperation (CAF) to finance the construction of the second section of the Néstor Kirchner gas pipeline, with a loan that will total US$ 540 million.
The Minister of Economy, Sergio Massamet on Friday afternoon with the president of CAF, the Colombian Sergio Diaz Granadosin the Scalabrini Ortíz hall of the Palacio de Hacienda, and confirmed that CAF will finance the second tranche of the project, whose construction would end one year after the first, in June 2024.
“It is essential to advance in the financing of the second section of the Néstor Kirchner gas pipeline. The truth is that this initiative finance US$ 540 million through CAF It puts us on a path that is much more likely that we will have finished the second section no later than June 2024,” Massa said in an official statement released this Saturday.
“We believe that CAF has the activity and outlook towards the region that other multilateral (organizations) do not have and that is extremely important,” added the head of the Palacio de Hacienda.
Likewise, Massa stressed that this week “the remaining disbursements were made” of the financing program agreed with CAF at the beginning of this year, the amount of which amounts to US$ 1,000 million.
The Projects They are focused on connectivity tasks, climate change, water and sanitation, food and care for the most vulnerable sectors.
“We have a huge portfolio that somehow allows us to consolidate an investment path for development,” the minister emphasized, anticipating that in 2023 the bank will disburse another US$1 billion “to continue expanding investments in Argentina.”
The CAF’s intention, as Diaz Granados pointed out last August, is to double Argentina’s current portfolio of US$4.4 billion in loans in the next four years.
CAF is a bank Founded in 1970, it is currently made up of 19 countries in Latin America and the Caribbean, including Argentina, Brazil and Mexico, as well as Spain, Portugal and 13 private banks.
The second section of the gas pipeline will connect the towns of Salliqueló in the province of Buenos Aires with San Jerónimo in Santa Fe
Enarsa (Energía Argentina) launched on September 5 the call for Public Tenders for the elaboration of the extended basic engineering of this section, which will allow the capacity of the national trunk gas pipeline transportation system to be increased by 25%.
In addition to this, the section would open the possibility of arrive with a greater volume of gas from Vaca Muerta to the large urban and industrial centers of the country, as well as linking with the Northeast gas pipeline (GNEA) to supply the provinces of the region today isolated from the system.
Once tendered, the works will have a term of 120 calendar days and in addition to basic engineering, they include the cadastral survey and the preparation of the gas pipeline planimetry,
In addition to CAF, Argentina is in negotiations with Brazil for the financing of this second stagea country that is particularly interested since the second tranche will allow Argentina to export surplus gas from Vaca Muerta.
“The teams from Energía Argentina (Enarsa), the Argentine and Brazilian Economy Ministries, the foreign ministries and the Brazilian National Development Bank (Bndes) are advancing in negotiations to finalize the financing of the second stage of the work” , affirmed weeks ago the Argentine ambassador in Brazil, Daniel Scioli.
The pipeline will allow increase transport capacity in 24 million cubic meters of gas per day -44 million with the second section completed- to replace the import of fuels extending over 558 kilometers with an estimated investment of US$1,500 million, and generating savings of US$3,500 million per year in substitution of gas imports.
The operational authorization of the first section between Vaca Muerta and Salliqueló is scheduled for June 20, 2023, coinciding with the peak of winter demand for natural gas.
