Midstream bottlenecks threaten Argentinian growth

Domestic gas in the Vaca Muerta is poised for growth, but much depends on scaling the country’s midstream

Argentina’s gas production is almost back to pre-pandemic levels, vindicating the price incentive scheme set by the government last year. But midstream bottlenecks are projected to hamper further growth in unconventionals from the Vaca Muerta shale basin until more capacity can be unlocked. The government says that expanding the Transport.Ar gas pipeline system will require $3bn to increase capacity by 44mn m³/d. The extra capacity will come from the recently sanctioned Nestor Kirchner Gas Pipeline, which is scheduled to come onstream by winter 2023 and connect the Vaca Muerta to urban centres in the country’s north. Argentinian independent Pampa Energia describes the pipeline as a “game cha