Vaca Muerta Oil Sur advancing with Punta Colorada terminal at 54% completion, enabling Argentina’s shale oil exports via Atlantic coast

The VMOS initiative, led by YPF alongside partners Pluspetrol and Pan American Energy (PAE), centers on the Punta Colorada terminal in Sierra Grande, Río Negro. Two of six ultra-large crude storage tanks—each 82 meters in diameter, 35 meters high, and holding 120,000 cubic meters—are under construction, supporting a deepwater facility capable of loading VLCCs (Very Large Crude Carriers) directly, eliminating transshipment needs. The integrated infrastructure includes pumping stations at Allen, Chelforó, and Santa Rosa, together forming a 437-kilometer pipeline connecting Vaca Muerta’s prolific shale fields with the Atlantic coast. Initial throughput is expected at approximately 180,000 to 190,000 barrels per day by the end of 2026. Subsequent phases foresee scaling transport capacity to 550,000 barrels daily by 2027, with technical potential to extend up to 700,000 barrels per day.

The project is Argentina’s largest private energy infrastructure venture in recent decades and a pivotal development in its oil export strategy. The coordination between Neuquén and Río Negro provincial governments underscores a new integrated Norpatagonia energy corridor, positioning the region as a significant player in global shale oil markets. Local employment and industrial impact are substantial: over 10,000 direct and indirect workers currently engaged, with more than 80% sourced locally, and over $120 million in regional wages disbursed. Contracting to local companies has exceeded $200 million. The establishment of VMOS offices in Sierra Grande consolidates the project’s operational base.

Executives emphasize adherence to tight schedules amid logistical challenges, reflecting commitments to maintaining momentum and leveraging Argentina’s growing shale production for international markets. The export corridor is projected to generate upwards of $15 billion annually in export revenues starting in the coming years, altering the nation’s energy export dynamics through Atlantic gateway development.

Overall, VMOS represents a transformative step in Argentina’s energy infrastructure, enabling export diversification, boosting regional economies, and solidifying its role as a competitive shale oil supplier.