YPF’s $2.5bn Vaca Muerta Sur Pipeline Set to Boost Argentine Crude Exports

The article focuses on Argentina’s largest oil and gas producer, YPF SA, and its plans to construct a $2.5 billion pipeline called Vaca Muerta Sur to transport crude from the shale patch in Patagonia to the Pacific coastal city of Punta Colorada. This pipeline is crucial for exporting crude as shipments are a more immediate way to generate revenue compared to reducing the country’s LNG imports through a new trunk line for shale gas or reversing the flow of a pipeline to supply domestic shale to the northern provinces. The pipeline is expected to carry 180,000 barrels per day in 2026 and could potentially have a capacity of 700,000 barrels. YPF has already secured environmental authorization for the project and is currently seeking bids from contractors. Other oil companies are also investing in expanding existing facilities to export crude overseas from Argentina’s Atlantic coast. These efforts are part of YPF’s strategy to prioritize Vaca Muerta over other projects following the appointment of new management who are selling off aging conventional oil fields to refocus resources on this area.