TGS to Invest $250 Mln in Infrastructure to Transport Vaca Muerta Gas Production

Instant Max AI

(Transportadora de Gas del Sur S.A., 3.Apr.2018) — Transportadora de Gas del Sur S.A. (TGS) executed an agreed minute with the Undersecretary of Energy, Mining and Hydrocarbons of the Province of Neuquén and Gas y Petróleo del Neuquén S.A. (GyP), whereby TGS is granted a concession to build and operate a gathering pipeline which will cross a number of fields in the Vaca Muerta formation; in addition, TGS will build and operate a conditioning plant.

It should be pointed out execution of the agreemend is subject to approval by the Provincial Executive Branch, through the issuance of the corresponding Provincial Decree in the Official Gazette of the Province of Neuquén; as from which date it will come into effect. In addition, to make the project feasible, TGS entered into natural gas transportation and conditioning agreements with certain natural gas producers.

The gathering pipeline, which will connect the Rincón La Ceniza area to the main transportation systems, will have a transportation capacity of 1.3 billion of cubic feet per day (Bcf/d) -expandable to 2.0 Bcf/d-, a length of 57 miles, a 36” diameter and will operate at a 97 Kg/cm2 pressure.

The conditioning plant, which will adapt the quality of the natural gas before it enters the main natural gas transportation pipelines, will have an initial capacity of 177 million cubic feet per day (MMcf/d), expandable in modules up to 2.0 Bcf/d.

The amount of the investment related to the project’s first stage amounts to $250 million and its execution will be implemented throughout the rest of the year 2018 and during part of the year 2019.

The project represents an essential contribution to the development of the Vaca Muerta hydrocarbon formation, and both the National Government and that of the Province of Neuquén are highly interested in it, as it will provide the infrastructure required for the incremental natural gas production to enter the main natural gas transportation systems. For TGS, the development of the project underscores its interest in the Argentine energy industry growth.

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Energy Analytics Institute (EAI): #LatAmNRG

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