GNF to expand Argentina-Chile pipeline capacity

Spanish pipeline operator Gas Natural Fenosa (GNF) will invest USD 42 million-50 million to reactivate and increase the capacity of the Pacific gas pipeline, local media reported Monday.

Built to allow Argentina to transport gas to Chile, the 600-kilometre pipeline stopped operating in 2005 when the former’s gas production could no longer sustain exports. As gas production is expected to increase in the near future due to the addition of shale gas from Vaca Muerta, GNF has decided to reopen the pipeline.

The company will also add a compressor station, expanding the pipeline’s capacity from 7.5 mcm (265 mcf) per day to 12.5 mcm (441 mcf) per day. Both YPF and ExxonMobil already hold permits to use the additional capacity to export gas from their Vaca Muerta projects to Chile.

GNF holds a 56.7% stake in the Argentinian side of the Pacific gas pipeline, and a 60% stake in the Chilean side.

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