Argentina secures $540mn loan for Vaca Muerta gas pipe
Argentina's government has secured a $540mn loan from the Development Bank of Latin America (CAF) to finance the construction of the President Nestor Kirchner gas pipeline, the country's economy ministry announced on March 7.
The project will support the transport of natural gas from the Vaca Muerta shale formation, helping to remove a bottleneck in order to support increased production. The gas will be piped to north Argentina, for use by homes and industries, the ministry said.
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Vaca Muerta holds the world's second-largest shale gas reserves and the fourth-largest shale oil deposits. But its potential has been held back by a lack of evacuation capacity. With extra capacity, though, the formation could be used to displace LNG and pipeline gas imports that Argentina depends on.
The government announced its support for the proposed 44mn m3/day President Nestor Kirchner pipeline in February last year. It will connect Vaca Muerta to the Buenos Aires area, raising evacuation capacity from the formation by 25%.