The Brazilian state development bank BNDES has approved a US$689m financing for the second phase of the Néstor Kirchner gas pipeline project in the Vaca Muerta shale region in Argentina. Argentina should also receive US$540m from the Latin American development bank Corporación Andina de Fomento (CAF) for the project.
The gas pipeline project, which entered construction in April 2022, will connect the Vaca Muerta shale play in the southern province of Neuquén to consumption centres. 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 by June 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).