Argentina Approves $1.3B Pipeline Project to Export Vaca Muerta Gas

The Argentine government has given its approval to the San Matías Pipeline project under the Large Investment Incentive Regime (RIGI), paving the way for a $1.3 billion energy project.

The pipeline, which will stretch 298 miles from Tratayén in Neuquén to San Antonio Oeste in Río Negro, is designed to carry 954 million cubic feet of natural gas per day towards floating liquefaction facilities on the Atlantic coast.

The project's approval grants access to tax, customs, and foreign exchange incentives intended to make large projects easier to finance. The pipeline will be built by Southern Energy, a consortium involving Pan American Energy, YPF, Pampa Energía, Harbour Energy, and Golar LNG.

The San Matías Pipeline is not part of Argentina's domestic gas network but rather a dedicated route for exporting Vaca Muerta gas reserves to Atlantic floating LNG terminals. The project includes the construction of a 60,000-horsepower compressor station and upgrades to existing equipment.