Argentina has secured a US$540m loan from the Development Bank of Latin America (CAF) for the construction of the Néstor Kirchner gas pipeline, which will connect the Vaca Muerta shale play in the southern province of Neuquén to Argentinian consumption centres. The loan will finance the complementary works of the gas pipeline, notably its reversion. The complementary works will allow the transport of natural gas from the Neuquén Basin to the provinces of central and northern Argentina and, in the future, export the surpluses to Chile, Bolivia and Brazil.
The gas pipeline project entered construction in April 2022. The first phase of the proposed gas pipeline would stretch between Tratayén in the Neuquén province and Salliqueló in the province of Buenos Aires. The construction of the first phase of the project (24 mcm/d or 8.8 bcm/year) should require US$1.6bn in investments, last 18 months and be completed in 2023. The entire pipeline, which is estimated to cost US$3.4bn, would then be extended to San Jerónimo (Santa Fe), crossing the provinces of Río Negro, La Pampa and Buenos Aires, and its capacity would be increased to 44 mcm/d (16 bcm/year). In December 2022, the Brazilian state development bank (BNDES) also approved a US$689m financing for the second phase of the Néstor Kirchner gas pipeline project.