Argentina to Begin Petroleum Exports from Río Negro by Late 2026 via Vaca Muerta Oil Sur Pipeline

The Vaca Muerta Oil Sur pipeline, extending 437 kilometers between Allen and Punta Colorada in Río Negro, is nearing completion with a total capacity initially set at 180,000 barrels per day, scaling to 390,000 barrels by mid-2027 and ultimately targeting 550,000 barrels daily in later phases. Central to this infrastructure is a new export terminal at Punta Colorada, featuring six storage tanks with a combined capacity of 720 million liters. This terminal consolidates Río Negro’s role in Argentina’s oil matrix and aims to facilitate direct crude exports through Atlantic access.

The project, with an estimated investment of US$3 billion, includes four pumping stations and 28 safety valves, addressing logistical bottlenecks experienced in the Neuquén basin. Construction activities reached a pivotal point with the completion of the pipeline’s last automated weld and ongoing hydraulic testing. The peak workforce is anticipated during March-April 2026, employing approximately 1,600 workers, predominantly local residents under the provincial 80/20 employment law mandate. Continuous safety and hygiene standards are enforced across construction sites.

This development dovetails with Argentina’s broader oil production targets, which estimate total output nearing one million barrels per day by late 2026, driven heavily by unconventional production from Vaca Muerta. Despite global price volatility and financial constraints on investment, pipeline capacity expansion through VMOS alleviates export limitations and could support higher crude marketing volumes, valued at nearly US$8.8 billion in 2026 projections. Río Negro’s enhanced export infrastructure exemplifies a strategic pivot to stabilize and grow Argentina’s hydrocarbon export profile.