Argentina Projects USD 2 Billion in Vaca Muerta Liquid Exports by 2035

Argentina is projecting a significant increase in natural gas liquids exports, driven by the expansion of Vaca Muerta and new investments in processing, transportation, and fractionation infrastructure. Industry specialists have set a target of surpassing USD 2 billion annually in foreign sales over the next decade.

In 2025, the country exported approximately USD 700 million in these products, primarily to regional markets such as Brazil, Chile, and Peru. The opening of operations to India signals diversification efforts, in a context where Asia-Pacific accounts for nearly 60% of global liquefied petroleum gas (LPG) demand.

One of the central projects is the expansion of Compañía Mega in Bahía Blanca, controlled by YPF, Petrobras, and Dow. The initiative, incorporated into the Regime for Large Investment Incentives (RIGI), involves an initial investment of USD 365 million and would increase processing capacity from 4,800 to 7,200 tons per day. The comprehensive program could reach USD 650 million.

Also notable is the development of liquids by Transportadora de Gas del Sur (TGS), associated with the corridor linking Tratayén, General Cerri, and Bahía Blanca. The project would require over USD 3 billion and would have an estimated capacity of between 2.7 and 2.8 million tons annually of C3+ liquids. At full operation, the project could deliver approximately 2.4 million tons of commercial LPG.

A third production hub could emerge in Río Negro, linked to liquefied natural gas projects and gas treatment for liquefaction. This development would enable propane, butane, and natural gasoline production in the San Matías Gulf area, complementing the Bahía Blanca industrial complex.

Current projections estimate that Argentine LPG, propane, and butane production could reach 4.8 million tons by 2030, with between 3 and 3.4 million tons available for export. A longer-term estimate places the country at around 8 million tons by 2040 and among the world's five largest exporters.

To achieve this growth, the sector considers expansion of Vaca Muerta evacuation infrastructure critical. Among the mentioned projects is the expansion of the Perito Moreno pipeline, whose capacity could increase from 14 to 35 million cubic meters daily through new compression plants. For Mega, the project would require 45 months of construction, involving a collection network, processing facility, polyduct, fractionation unit, and port terminal.