The facility will process natural gas, including associated gas extracted alongside crude oil from Vaca Muerta wells, converting it into exportable liquids such as butane and propane. This processing capacity addresses mounting infrastructure bottlenecks as drilling activity intensifies across the shale formation, which currently produces more than half of Argentina’s total oil and natural gas output. TGS will fund a portion of the $3 billion capital requirement directly, while banking institutions are finalizing terms to provide the remaining project financing.
Chevron confirmed in a statement that it is nearing completion of agreements related to gas processing and NGL infrastructure in Vaca Muerta alongside industry partners, though YPF and Pluspetrol declined comment. TGS did not respond to requests for information. The project represents one of several midstream and export infrastructure initiatives designed to unlock Vaca Muerta’s export potential as Argentina transitions from domestic energy focus to international supply participation.
Chevron’s involvement extends well beyond the NGL facility. The US supermajor recently submitted a $13.8 billion oil drilling project for approval under President Javier Milei’s flagship investment program, known as RIGI, which offers tax incentives and regulatory benefits to large-scale ventures. The application marks one of the most substantial US capital commitments to Argentina since Milei assumed office, signaling renewed international confidence in the country’s energy sector.
The Vaca Muerta formation, spanning 30,000 square kilometers across Neuquén and adjacent provinces, contains estimated recoverable resources of 16.2 billion barrels of oil and 308 trillion cubic feet of natural gas according to US Energy Information Administration assessments. The shale basin had more than 1,500 hydraulic fracturing wells operational as of late 2024, representing one of the most intensive unconventional development programs outside North America.
This article was curated and published as part of our South American energy market coverage.
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