One company announced the first investment while waiting for RIGI: it proposed to contribute US$700 million to expand the network and replace gas imports

company Transportadora Gas El Sur (TGS) He proposed this to the government on Wednesday Xavier Miley A private initiative project to expand the natural gas transport capacity of the Vaca Muerta del Mar President Nestor Kirchner Gas Pipeline (GPNK)With associated investments of USD 700 million and forecast tax savings of USD 500 million per year.

The work, whose completion is scheduled before the winter of 2026, provided it is awarded by November this year, will make it possible to replace fuel imports and generate an exportable balance in a period of low consumption.

The company, controlled by Pampa Energy And this Sielecki familypresented the details of the plan this morning Ministry of Economy.This is the first major investment proposal submitted by the private sector, in line with the model that Miley’s management wants to follow in place of public works after approval. basic Law, especially Large Investment Incentive Mechanism (RIGI) And recently the rate has increased.

Details Revealed infobae By Luis Falla, Executive Director of the Silecki Group, Oscar Sardi, CEO of TGS and Gustavo Mariani, CEO of Pampa Energia.

“In the event that the private initiative is accepted by the Nation’s Ministry of Economy, it must be classified as of national public interest, and a competition will be held, through which TGS, and any other interested company, can issue an offer according to the parameters set by the Nation’s Ministry of Economy (or whatever the latter decides) to be included in said competition,” the transport company explained.

Since TGS submitted a private initiative project, it will have preference in the competition in case of equality of award conditions. Enarsa The operation of the gas pipeline must, at least partially, be transferred to the winning company.

“The work will entail an investment of USD 500 million over 20 years and a recovery charge of USD 200 million over 35 years,” he said. This is the first time in nearly 20 years that the company has invested in a regulated gas system.

The plan foresees expanding the transport capacity of Phase 1 of the GPNK by 14 million cubic meters per day which runs from Tritín (Neuquén) to Salicello (Buenos Aires) with work on four compressor plants. This part will cost around US$500 million and will be open to a private competition in which international competitors can participate. Currently the pipeline transports 11 million cubic meters per day and this will increase to 21 million cubic meters in the coming months with the entry into operation of the two compressor plants located at each end of the pipe.

According to TGS, this work could first replace and then complement the construction of the second section of the GPNK, which is planned from Salicello to San Jerónimo (Santa Fe), but would only cost 15% of the cost of the second phase of the GPNK project, estimated at US$2.5 billion.

Additionally, TGS committed to invest USD 200 million for other compressor plants and a 20 kilometer long Lope (parallel gas pipeline) to reach the consumption areas of the city and Greater Buenos Aires. This disbursement will be made even if the company does not win the tender for the work worth USD 500 million.

Thus, GPNK will have the capacity to transport approximately 35 million cubic meters of gas per day from Vaca Muerta through the system operated by TGS. Transportadora Gas del Norte (TGN)To access the coast and north of the country, which will allow us to stop being dependent on imports of fuel and natural gas. Bolivia,

“The Vaca Muerta reserves are equivalent to more than 120 years of domestic consumption,” Sardi said. “It is essential that Argentina has the necessary infrastructure that allows it to capitalize on these resources during the energy transition,” the TGS CEO added.

For their part, Mariani and Selecki highlighted: “Since 2019, TGS has been investing more than USD 700 million in midstream facilities to accompany the development promoted by gas producers in Vaca Muerta. This project, which adds an additional USD 700 million, reinforces the call of the company and its shareholders to trust and bet on the economic and social development of the country.

“If the BASE Law is approved, gas transportation rates for users will be lower as a result of private investments within RIGI,” Mariani said.

“We are convinced that this is the most efficient expansion work option at the moment. Its great contribution to supply and its short construction period will allow Argentina, starting from 2026, to prioritize its own resources, stopping spending US$700 million a year on imports, which could be replaced by gas from Neuquén at a cost of US$200 million, generating significant savings and guaranteeing internal supplies every winter,” Sardi said.

In the coming months, the government will launch a International Tender the second section of GPNK With the intention that the investment of at least US$2,554 million required for its construction will be financed by the private sector. The work will be completed and gas will be transported by March 2026 Dead cow to the coast, with the aim of facilitating exports to the south brazil,

The second stage of the GPNK will allow doubling the transport capacity of the pipeline to about 40 million cubic meters per day. Liquids transported from the first stage Dead cow to Sallicello (Buenos Aires) and the project is to reach the coast (San Jerónimo, Santa Fe). The official intention is to hand over the works at the end of December and to be operational by March 2026. The TGS proposal would serve as an eventual replacement and then complement to this project.