TGS moves forward with the Final Investment Decision for its Liquids Processing project in Vaca Muerta.
With the approval of its Board of Directors, TGS confirmed the execution of its NGLs Project, which constitutes the largest investment of its kind in Argentine history and whose start-up is scheduled for 2030.
TGS’s Board of Directors approved the agreements to be signed with YPF, Pluspetrol and Chevron, covering more than 80% of the project’s capacity. The company is also holding advanced negotiations with other producers to complete the available volume.
Oscar Sardi, CEO of TGS, stated: “This is a strategic investment of great significance for Argentina’s energy development. With an investment of US$3 billion, the project will enable exports of approximately US$1.2 billion per year, reaffirming our commitment to strengthening the country’s productive infrastructure.”
The Project, aimed at obtaining the liquids recovered from the processing of natural gas derived from hydrocarbon production, involves the construction of a gas-stream segregation pipeline of approximately 100 km, new Gas Processing facilities at the Tratayén Plant, the construction of a products pipeline between Tratayén and Bahía Blanca, as well as a fractionation plant and a product storage plant in Bahía Blanca. It also includes complementary works at the maritime terminal for export.
This initiative is key to resolving one of the main bottlenecks that could limit the development of Vaca Muerta and consolidate the country’s export growth. In particular, it will make it possible to scale up crude oil production and condition the associated gas for transport through the trunk and export pipelines.
Over the four years of construction, the project is expected to generate approximately 4,000 direct jobs and 15,000 indirect jobs.
