TGS to build Vaca Muerta infrastructure

BUENOS AIRES, April 4, 2018 – Argentinian gas distributor Transportadora de Gas del Sur (TGS) will spend USD 800 million to build a new pipeline and conditioning plant in Vaca Muerta, the company announced in a filing on Tuesday.

The pipeline is expected to span 97 kilometres through several key blocks in the play, with a capacity to transport 36.8 mcm (1.3 bcf) of gas per day. The plant will have an initial capacity to process up to 5.01 mcm (177 mcf) of gas per day, expandable up to 56.6 mcm (2 bcf) per day.

TGS added that USD 250 million of the total planned investment would go towards work in the 2018-2019 period.

The announcement came as Argentina looks to significantly increase its gas production to become a net gas exporter. At the same time, many operators in the Vaca Muerta shale play have expressed concern regarding the lack of evacuation infrastructure needed to support increased gas output.

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