Argentine moving forward with Vaca Muerta gas pipeline tender

Argentine state company Energía Argentina continues to move forward with the tender process to build the Vaca Muerta pipeline megaproject.

On Tuesday, officials opened an economic bid for lot 3, which involves laying 133km of duct. 

Five parties placed technical bids earlier this month. For lot 3, officials accepted the offer filed by local firm BTU.

In parallel, officials awarded the contract for lot 2 to a consortium formed by Argentine-Italian group Techint and local company Sacde. The work involves laying 220km of the line. Bids were opened on Monday.

On Sunday, Energía Argentina awarded contracts for lot 1 and lot 5 to Techint-Sacde and local player Esuco, respectively. 

Energía Argentina chairman Agustín Gerez has said officials were working seven days a week to advance the process and that the goal was to bring the first phase online by mid-2023. First-phase work involves deploying around 680km of pipe, which would be used for the main duct and ancillary projects such as the Mercedes-Cardales link.

Energía Argentina, which is managing the project, and manufacturer Siat recently signed a contract for the provision of pipes. Tender processes for components such as valves and measuring equipment have also been launched. 

The price tag for the first phase, which will be carried out under the public works model, was disclosed last year as around US$1.6bn, but that figure is now likely to be significantly higher because of inflation and the weakening of the peso. Argentina wants to build the pipeline to support increased domestic production which, in turn, would substitute expensive winter LNG imports and open the door for firm year-round exports to neighboring countries. 

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