Argentina's VMOS Pipeline Set to Boost Oil Exports to 180,000 Barrels Per Day
Argentina's oil industry is set to receive a significant boost with the completion of the VMOS project, a pipeline that will transport shale oil from the Vaca Muerta formation in Neuquen province to a port on the Atlantic coast in Rio Negro province.
The pipeline, which spans 437 kilometers, is expected to be operational by January and will initially export 180,000 barrels of oil per day. This figure is projected to increase to 360,000 barrels per day by mid-year and 550,000 barrels per day by 2028.
YPF's Chief Executive Horacio Marin expressed optimism about the project's potential, stating that they are already considering expanding capacity to 700,000 barrels per day. The Vaca Muerta formation is one of the world's largest shale oil reserves, and Argentina's government hopes it will help reduce costly energy imports and drive economic growth.
The country has seen a significant increase in its energy trade surplus in recent years, with analysts estimating it could reach $11 billion in 2026. Marin also spoke about a liquefied natural gas (LNG) export project, which is expected to have annual production capacity of 12 million tonnes and potentially expand to 18 million tonnes.
Tenders for a processing plant and a 48-inch-wide natural gas pipeline have already been launched, with tenders for the pipes themselves set to be announced in two months. The pipeline will have the capacity to transport 100 million cubic meters of gas per day.