The government of Argentina has stalled two large energy infrastructure projects - the first section of a new gas pipeline to Vaca Muerta and a power transmission line - due to a lack of financing, in a context of economical uncertainty.
The tender for the construction of the first section of a gas pipeline between Tratayén in the Vaca Muerta gas formation (Neuquén province) and Salliquelo (Buenos Aires) has been postponed for the third time, as no bid was submitted. The first section would require US$800m in investments to deliver 15 mcm/d (5.5 bcm/year) of gas from Vaca Muerta to consuming centres. However, gas drilling has been stopped since August 2019; the covid-19 pandemic and the fall in oil prices have degraded the economic viability of gas production in this area and decreasing investments are expected to cut gas production in 2020 and 2021.
In addition, the government has cancelled the tender to build a power transmission line worth US$560m between Río Diamante (Mendoza province) and Charlone (Buenos Aires province). The project had already been postponed in November 2019.