March 12, 2026 [Reuters]- Argentine energy firm Transportadora ​de Gas del Sur (TGS) said on Wednesday it will ‌invest $3 billion in a new natural gas liquids project in the Vaca Muerta shale formation.

The project, to be developed over almost four years, ​is expected to generate approximately $1.2 billion in annual exports.

The ​company plans to submit the project to a large-scale ⁠investment incentive scheme, known as RIGI, introduced by President Javier ​Milei’s administration.

“The project is critical; it is essential for Vaca Muerta ​to continue developing and reach the target of 1.5 million barrels per day by 2031-2032,” Marcelo Mindlin, chairman of Pampa Energia, which co-controls TGS, ​said at a press conference in New York.

Argentina is seeking ​to massively develop Vaca Muerta, the world’s second-largest unconventional gas reserve, to ‌boost ⁠foreign exchange earnings and reduce its dependence on energy imports. Vaca Muerta is located in the province of Neuquen, in the west of Argentina.

The project includes new gas-processing facilities at the ​company’s Tratayen plant ​and the construction ⁠of a multi-product pipeline connecting the facility to the Bahia Blanca port.

TGS said it will ​fund part of the investment with its own ​capital, and ⁠is working with international banks to secure the remaining financing.

Economy Minister Luis Caputo was present at the investment announcement during his ⁠trip to ​New York to participate in “Argentina Week,” ​an event aimed at attracting new investments to the country.