LatAmOil: IEASA gets green light for Vaca Muerta gas line

Argentina’s government has authorised state-owned Integración Energética SA (IEASA) to build a new pipeline that will serve unconventional gas fields in the Vaca Muerta shale formation.

Buenos Aires gave IEASA a green light for the project last week, when it issued a decree granting the company a concession for the project. Under the decree, IEASA has the authority to establish a trust that will be responsible for building, maintaining and operating the link, which will be known as the Néstor Kirchner pipeline.

According to press reports, IEASA has already utilised that authority to call a tender to obtain pipes for the project and will soon launch another bidding contest to select a construction contractor.

When finished, the conduit will pump gas from Vaca Muerta fields to key demand centres in Argentina. IEASA will be obligated to give the national oil company (NOC) YPF priority access to the pipeline’s capacity and make any remaining capacity available to other producers on a non-discriminatory basis.