TGS, a subsidiary of Argentina's TGS, to invest $3 billion in a natural gas liquids project
The Argentine energy company Transportadora de Gaz del Sur (TGS), announced on Wednesday that it 'will invest $3 billion 'in a new natural-gas liquids project within the Vaca Muerta shale.
Exports of approximately $1.2 billion per year are expected from the project over a period of almost four years.
The company intends to submit 'the project to a large scale investment incentive scheme known as RIGI. This was introduced by the administration of President Javier Milei.
Marcelo Mindlin said, "The project is crucial; it's essential if Vaca Muerta is to reach its target of 1.5m barrels per day by 2031-2032," at a New York press conference.
Argentina wants to develop Vaca Muerta - the second largest unconventional gas reserve in the world - to increase its foreign exchange earnings and decrease its dependency on energy imports. Vaca Muerta lies in the Argentine province of Neuquen in the west.
The project involves the installation of new gas-processing equipment at Tratayen's plant and the construction of a pipeline that connects the facility to the Bahia Blanca Port.
TGS will finance a part of the investment from its own capital and is working with international banks to secure the remainder financing.
Luis Caputo, the Economy Minister of Argentina, was in New York for "Argentina Week," a conference aimed at attracting foreign investment to the country. Reporting by Rodrigo Campos, Eliana Raszewski and Will Dunham. Editing by Daina Bet Solomon and Will Dunham.
(source: Reuters)
