Argentina’s government will call for bids next week for companies interested in converting pipelines that were used to transport Vaca Muerta production to the north and the center of the country so that they transport the gas in the other direction, Economy Minister Sergio Massa confirmed on Friday. This comes as Argentina seeks to become more natural gas independent.
Located in western Argentina, the massive Vaca Muerta shale formation is viewed as key to boosting local natural gas production, thereby reducing Argentina’s reliance on pricey imports.
The winning bidder will work to convert the pipelines so that they transport natural gas in the opposite direction. This means that instead of being used to import natural gas from abroad, the pipeline will be used to supply Vaca Muerta natural gas to the rest of the country as well as export the gas to northern Chile, central Brazil, and Bolivia.
“This will make it possible to begin thinking of Argentina as an energy exporter,” Massa stated. Currently, Vaca Muerta holds the second-largest shale gas reserves.