President Alberto Fernández announced at Casa Rosada the start of the process for the construction of the first stage of the Néstor Kirchner gas pipeline and the Transport.Ar National Production Gas Pipeline System, the development of which will ensure the expansion of the transport capacity of the national gas pipeline system , in addition to boosting gas export capacity to neighboring countries and generating greater annual tax and foreign exchange savings.
At the end of the meeting with the Secretaries of Energy, Darío Martínez, and Strategic Affairs, Gustavo Beliz, the President expressed the Government’s political will to advance the work, by calling for public bidding, with an increase in the budget corresponding to the first tranche of the project at $ 40,000 million.
The president instructed the Ministry of Energy and the state firm Integración Energética Argentina (Ieasa) to advance the call for public bids and learned about the details of the project, which upon completion will achieve an increase in transport capacity of 24 million euros. cubic meters per day and will generate foreign exchange savings of US $ 1,465 million per year and a fiscal saving of 1,060 million due to the substitution of LNG and Gas Oil imports, in addition to offsetting the drop in production levels of the Bolivian supply.
On the other hand, Martínez conveyed to the President the need to advance in the development scheme of the second stage of the project, which will allow the increase of the total transport capacity by 44 million cubic meters per day and thus fully supply the internal demand with Argentine gas and boost the country’s export capacity, with total annual savings of up to US $ 2,690 million in foreign exchange and 1,946 million in fiscal cost.
According to Martínez, due to the development of the Gas.Ar Plan, the production of natural gas had a growth of such magnitude that the transportation capacity can saturate the current gas pipelines.
Therefore, and given the potential of Vaca Muerta, he considered it necessary “to build a new system of gas pipelines that allow the maximum development of Argentine gas production to replace the expensive imports of LNG and diesel that the country is forced to carry out all the years to complete the supply of the internal demand and for the input of our Thermal Power Plants of Electricity Generation “.
The first stage of the Néstor Kirchner gas pipeline project and the Transport.Ar National Production Gas Pipeline System includes the construction works between Tratayen and Salliqueló, and between Mercedes and Cardales, the extension of the Nueba II Gas Pipeline (Ordoqui), the construction of the final sections in AMBA South and North, the reversal of the North Gas Pipeline in its stages I and II, and the expansion of the Central West Gas Pipeline.
The second stage includes the construction of the Néstor Kirchner Gas Pipeline between Salliqueló and San Jerónimo, the culmination of the reversal of the North Gas Pipeline, the expansion of the transportation capacity of the GNEA, the GNEA connection to San Jerónimo and Loops, and an increase in Compression in Aldea Brazilian (Gasoducto Entrerriano).
Martínez: the main objective is to “import less gas”
The Secretary of Energy, Darío Martínez, affirmed that one of the main objectives set with the construction of the Néstor Kirchner gas pipeline will be to “import less” gas.
The construction of the first stage of the Néstor Kirchner gas pipeline and the Transport.Ar National Production Gas Pipeline System, the development of which will ensure the expansion of the transport capacity of the national gas pipeline system, in addition to boosting gas export capacity to neighboring countries and generate greater annual tax and foreign exchange savings.
President Alberto Fernández expressed the Government’s political will to move forward with the work, by calling for a public tender, with the increase in the budget for the first tranche of the project by .000 million.
Martínez, in dialogue with journalists accredited in Casa Rosada, highlighted “the decision of the President (Alberto Fernández) in this first instance to restructure the budget and allocate 400 million dollars more to the 180 million dollars” already awarded “to begin the process tender for the first stage of the Néstor Kirchner gas pipeline, to be executed and put out to tender by the company Integración Energética Argentina Sociedad Anónima “.
According to the Secretary of Energy, “for Argentina it is a great measure, which will allow us to contribute 24 million cubic meters more, and in a second stage another 40 million cubic meters of gas that we are going to stop importing.”
Based on current values, the estimated savings in foreign currency will be around $ 1.5 billion.
Martínez pointed out that national production “is at full capacity with regard to transportation capacity,” which makes it necessary to build new gas pipelines to address this situation.
The official appreciated the presidential decision, made through the signing of a decree of Necessity and urgency, to carry out “the tender for this first stage, which is part of the National Transport.Ar Production Gas Pipeline System”.
And he pointed out that the plan has “complementary works and a second stage between Salliqueló and San Jerónimo for later.”
“They are complementary, with the aim of reaching winter with national gas,” said the official, and stressed that they are also important “for the development of the regions, with jobs and a growing value chain in pesos.”
