The greenfield development centers on expanding TGS facilities at Tratayén in Neuquén province with capacity to process 43 million cubic meters daily of gas from the Vaca Muerta shale formation. A 573-kilometer pipeline will transport separated liquids to new fractionation and storage plants in Bahía Blanca, where complementary marine terminal infrastructure will enable systematic exports. TGS projects annual production of 2.7 million tonnes of propane, butane and natural gasoline generating $1.2 billion in yearly export revenues once operating at full capacity.
The project addresses strategic constraints on unconventional oil production growth, where associated gas volumes threaten to limit crude output toward industry targets of 1.5 million barrels daily. Vaca Muerta gas contains 25-30% liquifiable components compared to 10% in conventional natural gas, creating commercial opportunity for segregated processing from wellhead through export terminal. TGS CEO Oscar Sardi indicated the investment will be structured through two parallel special purpose vehicles outside the existing corporate entity to comply with RIGI framework requirements.
TGS transports 60% of Argentina’s natural gas consumption through 9,000 kilometers of pipeline infrastructure. Compañía de Inversiones de Energía controls 53.83% of TGS shares split equally between Pampa Energía and the Sielecki family group alongside GIP and PCT. The state pension administrator ANSES holds 25.33% with remaining shares trading in Buenos Aires and New York markets. The development represents Argentina’s first large-scale gas processing plant construction in a quarter century, joining existing complexes at TGS Cerri and Compañía Mega where YPF holds 38% equity alongside Petrobras and Dow.
This article was curated and published as part of our South American energy market coverage.
