Doubts in the oil companies for the gas pipeline to Vaca Muerta

The pipeline that will connect Vaca Muerta with Buenos Aires is a priority for the government, according to its officials. However, the recent obstacless question the industry about its accomplishment within the period announced by the executive branch: mid-2023.

Techint won the contract for the supply of pipes. But he needs the sheet metal he will bring from Brazil and that operation has not yet been finalized. The delay could drag the civil works, which will be contracted out in July. The pipe is due to be delivered by August, but if those pipes are not available, the construction companies will not be able to advance the work.

There are also problems for purchase of valves. Energía Argentina, the state-owned company that is carrying out the project, declared the tender “null and void” because it did not find local bidders who would have adapted to the specifications of the tender.

Among the oil companies – which are also mainly gas producers – there are doubts about the deadlines of the project. The official target – June 2023 – seems distant to them. “It is clear that all times are postponed and that will have an impact,” said an executive who follows the pipeline day by day.

The government hopes to have the pipeline ready by June 2023. If it succeeds, could save up to $ 1.5 billion on LNG imports, as that liquid would be replaced with domestically produced gas. Sergio Massa, president of the Chamber of Deputies, said the pipeline will be completed on time.

“Although it is true that Energy and Economy seem to be aligned in this project, we see that there are many outstanding issues that prevent us from progressing in the deadlines they have set”, relaunched another energy referent, in an informal meeting with journalists, who asked not to identify.

“The pipes and valves are the start and they don’t go out. Imagine when the civil work arrives, which is usually the most complicated part. If the beginning is broken, I have a hard time believing the rest of the film will get better quickly, ”said another executive at an oil and gas company.

Energía Argentina agreed that the Ministry of Economy, led by Martín Guzmán, he oversees the bids of his evaluation committee. The minister has delegated the task to Darío Martínez, secretary of energy.

In less than a month, Energía Argentina – led by officials who adhere to the Kirchnerism- will launch the tender for the construction of the work: there are 573 kilometerseu is expected to be ready in June 2023. The start is scheduled for August. The budget for this activity is $ 220,584 million (approximately $ 1,800 million at the official exchange rate).

All the specifications relating to the construction of the pipeline are published on the company’s website.

To reach June 2023, which is the goal proposed by the Government, it will be necessary to build 6 kilometers per day, according to the estimates of one of the construction companies that wants to keep the works, as Clarín anticipated Sunday.

Each company interested in construction must submit offers for at least the four sections of the extension. It can be awarded only in one of those parts, with the exception of companies that present themselves in association and can access up to two sections in all.