The Argentinian state-owned oil and gas company YPF has started construction of the Vaca Muerta South oil pipeline. YPF has begun building the first section, which will run over 130 km between the towns of Añelo, in Neuquén, and Allen, in Río Negro (central Argentina). It will be followed by the construction of a second 437 km section, which will reach the coastal city of Punta Colorada, near Sierra Grande (Rio Negro). At its maximum operational capacity, the pipeline will be able to transport 390 kb/d of oil.
The Vaca Muerta formation has estimated gas reserves at around 8,700 bcm and oil reserves at 16.2 Gbl. It is estimated to be the second largest unconventional gas reserve and the fourth largest oil reserve of its kind in the world, with only 7% of its potential developed. Argentina is currently developing several pipelines to transport oil and gas from Vaca Muerta to urban centers of the country. In 2023, Argentina inaugurated the first section of its 4 bcm/year Néstor Kirchner gas pipeline.