Natural gas transport and value-added companies are already working on the possibility of open markets and generate new export businesses for the production of Vaca Muertafrom the construction of the Néstor Kirchner trunk gas pipeline, which is in the bidding stage.
This was highlighted on the last day of the Argentina Oil & Gas Exhibition which takes place in La Rural, during the panel shared by the CEOs of Transportadora Gas del Sur, Oscar Sardi; from Transportadora Gas del Norte, Daniel Ridelener; and from the Mega Company, Andrés Scarone.
Months ago, the national government launched the gas infrastructure plan Transport.Ar which, among other works, includes the laying of a new main gas pipeline to evacuate the incremental production of Vaca Muerta, which will allow adding some 44 million additional cubic meters to the system.
In the initial stage of the tender, which on March 31 foresees the opening of offers for the purchase of the tubes for the 656 kilometers of the Tratayén-Saliqueló section, companies already take for granted that in 2023 they will be able to face new works and projects from the greater availability of energy.
This resource will allow progress in firm export projects throughout the year to Chile and in the future to Brazil of Liquefied Petroleum Gas (LPG), as well as the construction of a Liquefied Natural Gas (LNG) plant.
It also includes the possibility of supplying -in the medium and long term- the petrochemical projects that are stopped due to the lack of sufficient gas.
“Having this pipe is important for what is upstream (the producers that operate in Vaca Muerta) but also for the country because that road new supply It favors the local user and the possibility of starting to put together liquefaction and export projects in a competitive manner,” said Sardi in the AOG space called Meeting with the CEOs.
In this sense, the owner of the largest transporter in the gas system explained that TGS advanced in the construction of a collector pipeline through the different areas of Vaca Muerta, inaugurated in 2021, from 150 kilometers longand yesterday agreed with the province of Neuquén a extension of 30 kilometersin an agreement signed within the framework of the Expo Oil & Gas.
“In the future we need many more sections to capture the gas from all the blocks and accompany it with conditioning plants like the one we already have planned for the winter of 2023. It is a positive and extremely optimistic process, because there are going to be opportunities for the SMEs and the entire energy industry,” said Sardi.
TGS, together with the company Excelerate Energy – the operator of the regasification ships required in winter – is also undertaking a modular LNG production project in the Bahía Blanca port area, about which Sardi said that “studies are advancing to reach before the end of the year with an investment decision.
Currently, it is estimated that LNG consumption is 380 million tonsand that by 2030 it will scale up to 300 million tons, so it is projected that the start of operation of the eventual plant could reach one million tons per year.
“The Bookings they are, we have to generate demand for the gas pipeline,” emphasized the head of TGS, pointing out that “projects do not stay forever in the countries and if they do not mature they go elsewhere. They are opportunities we can’t lose.”
In the #AOG2022Daniel Ridelener participated in the conference “Natural gas in Argentina”, in the panel “Current status and perspectives of natural gas in Argentina”, where he spoke about the present and future of gas supply and demand in the country and its relationship with neighboring countries. pic.twitter.com/nO5nnCVYm4
— TGN (@TGNGas) March 22, 2022
In a similar vein, Ridelener pointed out that the new gas pipeline “has a first vector, which is to supply all of Argentina’s unsatisfied demand, but also the possibility of to export almost immediately, taking advantage of links with underused neighboring countries with strong potential”.
“We’re changing the logic of the radial transport system and we are making it different” according to where the demand is, and in this perspective is added the reversal of the flow of the North Gas Pipeline operated by TGN, which has a capacity of 25 million m3 per day but today uses half of it due to the drop in production. of the Northwest basin and that of Bolivia.
With this work that is already underway “Vaca Muerta will supply the North of the country” and from there will be able to export to Chile through existing pipelinessupply the energy demand of the lily projects and throughout Bolivia get to the south of brazilin particular to the more industrialized states of the south such as São Paulo, Santa Catarina, Río Grande and Paraná.
“The 44 million m3 (to be added by the gas pipeline) are already in a matter of months, and it will depend on where the demand is located and the volume required by each project, which will define the partial expansions or new gas pipelines,” Ridelener anticipated.
It was also mentioned at the meeting that the Northeast Gas Pipeline enters into the Vaca Muerta gas equation, since the completion of the new trunk gas pipeline reaches the Greater Rosario area will allow supply new industries on the coast and improve their competitiveness.
Finally, the head of Mega, the gas fractionation company for the production of ethane, propane, butane and natural gasoline, highlighted the possibilities of increasing the production of LPG for export since the local market is supplied.
“Today the port of Bahia is being used to import gas, but reversing this scheme frees up export capacity“, Scarone said, agreeing that “you have the wealth and the demand market is there, the question is to make it viable”.
In this sense, he pointed out as “a chance unique” the export of LPG to supply the petrochemical industry in any part of the world in the medium and long term.
“There is a horizon of good prices in the international marketbut we need an economy to export and logistics to transport the gas or derived liquids to make the leap in production,” he stated, assuring that Mega has just completed the expansion works of the Vaca Muerta gas intake which allows it to process and fractionate 15% more product and is preparing to increase its capacity at the Bahía Blanca plant.
