Argentine natural gas company Transportadora de Gas del Sur (TGS) will invest an initial $250 million on gas transportation infrastructure in 2018 and 2019 in the Vaca Muerta shale fields, the company said on April 3.
TGS said in a filing it would build a 92 km (57 mile) gathering pipeline with 1.3 billion cubic feet per day (Bcf/d) capacity and later a conditioning plant to adapt the quality of natural gas before it enters the transport pipelines.
Overall investment will eventually reach an estimated $800 million with additional expansions planned, the company said.
Insufficient transportation infrastructure has held back oil and gas production and investment in Vaca Muerta, the world’s second-largest shale fields.
The TGS plant will have an initial capacity of 177 MMcf/d with expandable modules of up to 2 Bcf/d.
Reuters reported last October that TGS, controlled by Pampa Energia, was planning the $800 million investment in natural gas infrastructure, citing a company source.
The pipeline will cross the Bajada de Añelo, Bajo del Choique, La Invernada, Pampa de las Yeguas I y II, Parva Negra Este y Oeste, La Escalonada, Rincón La Ceniza, Los Toldos Norte, Sur, Este y Oeste, La Calera, El Orejano and Sierra Chata areas.
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