In a move that shook the energy sector, Pluspetrol, a privately held Argentina-based oil and gas producer, submitted an unprecedented bid in the history of Argentina’s gas industry: contracting pipeline transportation capacity to export gas to Chile through 2078. The information emerged from the bid opening of the open tender called by Transportadora de Gas del Norte (TGN), one of Argentina’s main natural gas pipeline operators. While final regulatory approval is still pending, the most striking element was the term: the offer would cover a 52-year period, from Jan. 1, 2026, through 2078.
Pluspetrol is seeking to transport 4.1 million cubic meters per day. Put into perspective, this is a highly significant volume: the company would be requesting to reserve nearly 40% of the pipeline’s total capacity. If awarded, almost half of the pipeline that crosses the Andes would carry almost exclusively Pluspetrol’s gas for the next five decades.
This scale not only reflects the geological potential of Pluspetrol’s assets in Vaca Muerta, Argentina’s main shale oil and gas formation, but also points to surplus production capacity that would allow the company to meet long-term international commitments without compromising supply to the domestic market.
The gas would enter TGN’s system at Tratayén, in the province of Neuquén, travel north to the La Mora station in Mendoza, and from there connect to the GasAndes pipeline, which crosses the Andes into Chile’s Santiago Metropolitan Region through the Maipo Canyon.
Originally, the bidding process was requested by Colbún, one of Chile’s largest power generators, which was seeking Argentine suppliers willing to sign long-term contracts. Pluspetrol identified the opportunity and decided to bid not only to meet that demand, but also to lock in strategic capacity on the pipeline for the next five decades.
Historically, gas export contracts have been signed for much shorter terms. A 50-year contract implies a high degree of confidence that Vaca Muerta holds sufficient gas resources to supply both Argentina and Chile for half a century. It also reflects confidence that the framework for energy integration between the two countries has matured enough to legally underpin a contract that will expire long after many of today’s executives have left their posts.
Pluspetrol operates the La Calera block in Vaca Muerta alongside state-run YPF, an asset widely regarded as a “factory” for gas and liquids. The bid underscores that Pluspetrol needs outlets for its vast production and that Argentina’s domestic market alone is not large enough. Securing pipeline access to Chile is seen as the only way to monetize these massive reserves without relying exclusively on seasonal demand from the Buenos Aires area or on a future liquefied natural gas plant.
For TGN, having a shipper that guarantees tariff payments for use of the pipeline over 50 years offers a level of cash-flow predictability that is highly valuable for any publicly traded infrastructure company.