Pampa Energía’s (NYSE:PAM) TGS gas transporter reportedly has proposed an $800M pipeline and gas treatment plant in Argentina’s Vaca Muerta shale fields, aiming to address a key barrier to increasing production in the area.
The project, subject to approval by the Neuquen provincial government, could be built in 18 months and would transport gas produced by companies including state-run YPF, Tecpetrol, Dow Argentina and Exxon Mobil (NYSE:XOM), according to Reuters.
Oil companies say pipelines in Vaca Muerta are currently moving 2.1B cf/day of natural gas and have capacity for 2.6B cf/day, which could rise as the government subsidizes gas production; so far this year, XOM, BP’s Pan American Energy unit, Wintershall, Total and Statoil have announced investments in Vaca Muerta.