Argentina’s YPF seeks energy transfer financing for major oil pipeline

YPF, Argentina’s state-owned oil company and top producer in the Vaca Muerta shale region, is in discussions with US-based Energy Transfer over financing a crucial oil pipeline running through the country, it said. Bloombergciting sources.

This collaboration is key to Argentina’s plan to significantly increase shale oil exports.

The project, called Vaca Muerta Sur, is estimated to cost 2.5 billion dollars (2.3 billion pesos) and is essential for YPF, which requires external financial support.

Energy Transfer, known for its gas pipeline operations in the US, is evaluating opportunities globally, including this Argentine venture.

Both companies refrained from commenting on the ongoing negotiations, the news agency said.

YPF intends to form a consortium with other oil drillers in the country that also need greater transportation capacity to increase production.

Sources familiar with the matter told the agency that the aim is to attract additional partners once this consortium is established.

The pipeline is expected to boost Argentina’s global oil export share and contribute to economic growth.

The country seeks to diversify its export base to create foreign currency reserves and mitigate the impact of recurring economic crises.

With the goal of exporting around 500,000 barrels per day (bpd) of shale oil by the end of the decade, the Vaca Muerta Sur pipeline could be transformative.

Currently, Vaca Muerta exports are slightly above 100,000 bpd, hampered by logistical bottlenecks and the need for truck transport in some areas.

YPF has already started construction of a smaller 128 km gas pipeline to connect shale fields to the city of Allen, in the province of Rio Negro.

The larger project, potentially involving energy transfer, would stretch 437 km from Allen to Punta Colorada on the Atlantic coast, where a new port facility is planned.

In March, YPF announced an investment of US$3 billion in shale operations as part of its $5 billion capital expenditure for 2024.

“Argentina’s YPF seeks energy transfer financing for key pipelines” was originally created and published by Offshore technologya brand owned by GlobalData.

The information on this website is included in good faith for general informational purposes only. It is not intended to constitute advice on which you should rely and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.