Argentina has authorized YPF to access government funds for a $3 billion pipeline from Vaca Muerta to Rio Negro, expected to boost oil exports by over $15 billion annually. The project is supported by prominent energy partners and aligns with the government’s investment strategy to enhance economic stability.
On March 14, the Argentine government approved a stimulus program that allows the state oil company, YPF, to receive funding for a significant pipeline project. This project aims to connect the expansive Vaca Muerta shale formation to a port in the Rio Negro province. Economy Minister Luis Caputo announced that the total cost for this initiative is projected to approach $3 billion.
Once operational, the pipeline is expected to facilitate over $15 billion in oil exports annually. YPF is collaborating with major energy companies such as Shell, Chevron, Vista, and Pan American Energy in this venture. This initiative is part of President Javier Milei’s broader strategy to encourage substantial investments in Argentina and invigorate the struggling economy.
The government aims to solidify Argentina’s position as a net energy exporter, leveraging the resources of Vaca Muerta, which is recognized as the second largest shale gas and fourth largest shale oil reserve globally.
The Argentine government’s approval of the stimulus program for the YPF pipeline project represents a significant step towards enhancing the nation’s oil export capabilities. With an anticipated cost of nearly $3 billion, this project holds the potential to generate over $15 billion in exports annually, bolstering Argentina’s aspirations to solidify its status as a net energy exporter through its vast Vaca Muerta reserves.
Original Source: www.marketscreener.com
