In a milestone for Argentina's energy infrastructure, the Government has formally awarded Transportadora de Gas del Sur (TGS) the expansion of the Perito Moreno gas pipeline , a project that will incorporate 14 million cubic meters per day of natural gas extracted from Vaca Muerta through an investment of 700 million dollars.
This decision, which strengthens the evacuation of unconventional hydrocarbons, responds to the need to optimize the transportation chain in a context of increasing production in the Neuquén Basin. With this expansion, the system will not only increase its total capacity from 21 to 35 million cubic meters per day, but will also contribute to stabilizing supply in key regions such as Greater Buenos Aires and the Litoral, aligning with the energy sovereignty policy promoted by the current administration.
The technical components of the undertaking are ambitious and precise: they include the construction of new sections of the pipeline connecting Tratayén, in Neuquén, with Salliqueló, in Buenos Aires, plus three compressor plants equipped with an added power of 90,000 horsepower, in addition to complementary interventions in the pre-existing TGS network.
These projects, which are expected to take two years to complete, incorporate efficiency and sustainability standards to minimize environmental impacts, such as the use of corrosion-resistant materials and real-time monitoring systems. The integration of this infrastructure will not only enhance the system's operational flexibility but also facilitate interconnection with other gas corridors, consolidating Vaca Muerta as a cornerstone of the national export matrix.
The bidding process, culminating in the official resolution published in the Official Gazette, positioned TGS as the only qualified bidder, whose offer was validated for its technical soundness and attractive economic projections. The proposed tariff of US$0.69 per million British thermal units (BTUs)—excluding VAT—will serve as the sole mechanism for capital recovery, also covering operating and maintenance costs and ensuring a reasonable return over the concession period. Under this private initiative model, TGS will assume full responsibility for financing and management, backed by dollar-denominated guarantees and specific contracts with Energía Argentina for capacity reservation and maintenance. This approach, which prioritizes private sector participation with state oversight through ENARGAS, exemplifies a development model that balances efficiency and regulatory control in large-scale projects.
From an economic perspective, the initiative generates a multiplier effect: the additional gas flow will enable the drilling of at least 20 new wells in Vaca Muerta, attracting complementary investments exceeding US$450 million in conditioning and processing facilities. Beyond the creation of direct employment in construction and operation—estimated at hundreds of skilled positions—the project projects annual foreign exchange savings of over US$700 million by displacing imports of natural gas and liquid fuels, with an additional tax benefit of nearly US$500 million. In a context of a strained trade balance, this injection of domestic resources not only alleviates external dependence but also strengthens the competitiveness of gas-consuming industries, such as petrochemicals and agriculture, by stabilizing prices and reducing volatility.
The context of Vaca Muerta adds layers of strategic relevance: the shale formation, with proven reserves exceeding 300 trillion cubic feet, urgently requires greater evacuation capacity to avoid bottlenecks that hinder productive expansion.
The gas pipeline works that are necessary
The Perito Moreno expansion is part of a broader portfolio of gas infrastructure projects, complementing initiatives such as the Néstor Kirchner gas pipeline and positioning Argentina as a net exporter by 2027. This synergy not only maximizes the revenue generated from natural resources but also aligns the country with international energy transition standards, incorporating low-emission practices in the transportation phase to attract global partners in LNG projects. Official voices celebrate the progress as a pillar of sustainable development: the Energy Secretariat emphasized that "this extension represents an essential step to boost Vaca Muerta, optimize energy revenue, and guarantee a reliable and affordable supply for homes and industries throughout the country."
TGS executives, for their part, emphasized their commitment to strict deadlines and quality standards, underscoring collaboration with the government as key to unlocking the basin's potential. These statements reflect a bipartisan consensus around infrastructure as an engine of growth, although analysts call for monitoring the project's execution to mitigate logistical risks inherent in works of this scale in Patagonia. Looking ahead, the completion of this expansion will catalyze a virtuous cycle in the sector: increased production in Vaca Muerta will not only boost export revenue but also incentivize innovations in efficiency and decarbonization, such as the integration of hydrogen into existing pipelines.
With COP30 on the horizon, Argentina could position itself as a regional leader in integrated fossil fuel management, provided these projects are complemented by just transition policies. Ultimately, the expanded Perito Moreno dam is not just a longer pipeline, but a bridge to a more self-sufficient and resilient energy economy, where shale gas serves as a temporary stepping stone to renewable energy.