July 23, 2024 [Oil & Gas Journal]- Argentina’s YPF has started work on the second section of the Vaca Muerta Sur project, a pipeline between Neuquen basin and the Atlantic coast of the province of Rio Negro.Camilo Ciruzzi

Argentina’s YPF has started work on the second section of the Vaca Muerta Sur project, a pipeline between Neuquen basin and the Atlantic coast of the province of Rio Negro.

During a public event, the company’s president and chief executive officer, Horacio Marin, confirmed that the project, which includes a pipeline and an export port in Rio Negro, is expected to begin second-phase construction in November.

The first section, already under construction, connects Loma Campana field in Vaca Muerta with the pumping station in Allen, Rio Negro (OGJ Online, May 22, 2024). The second section will extend from Allen to Chelforo and then to Punta Colorada.

Bidding for the second section is expected to be completed by end-August, Marin said. During the event, Marin said two American companies have shown interest in investing in the port terminal on the coast of Rio Negro. One is Energy Transfer, he said, noting that the companies are in negotiations until Dec. 31. “If they decide to invest in Argentina, our proposal is that they acquire 50% of the share capital,” he continued.

Vaca Muerta Sur Pipeline

The Vaca Muerta Sur Pipeline is a 128-km pipeline that extends to Allen in Rio Negro and from there to Punta Colorada (Sierra Grande). A future port in Punta Colorada has the advantage of deep water (40 m), which would allow Very Large Crude Carriers to operate.

YPF plans to have the first section of the pipeline project ready by yearend, although the initial deadline is March 2025. The entire project could be completed by end-2026.

The complete Vaca Muerta Sur project will require construction of a 525-km pipeline with a base capacity of 60,000 cu m/d of crude oil through a $2.5-billion investment, along with the construction of five pumping stations and storage tanks.

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