Vaca Muerta crude gains ground at Uruguay's La Teja refinery

Medanito crude, produced in the Neuquén Basin, has reached a share of four of every ten barrels processed by the La Teja refinery, operated by Uruguay's state-owned ANCAP. The advance is driven by Vaca Muerta's growth and a shorter supply route compared to bringing oil from Africa.

For years, Uruguay relied primarily on light crude from Nigeria and Angola. Greater evacuation capacity for Neuquén production and expansion of storage and loading facilities at Puerto Rosales enabled increased shipments to ANCAP's Terminal Este, located in José Ignacio.

Medanito exhibits characteristics compatible with La Teja's technical requirements, which demand light crude with low sulfur content. Beyond quality advantages, the shorter maritime distance to the Gulf of Guinea—where shipments can take two to three weeks—facilitates more frequent deliveries, reduces inventory requirements, and limits exposure to international freight costs.

Infrastructure to expand energy integration

The binational supply chain was supported by infrastructure projects in both countries. In Uruguay, the renovation of the José Ignacio monobuoy and its subsea connections strengthened oil receipt, which is then transported by pipeline to Montevideo. The infrastructure had been out of service since mid-2025 due to a failure that temporarily halted discharges and affected La Teja operations.

The restoration of shipments from Vaca Muerta offers Argentina a nearby outlet for its exportable surpluses and allows it to consolidate its position as a regional energy supplier. In parallel, the rehabilitation of the Transandean Pipeline reactivated crude transport to Chile and ENAP refineries.

Integration also extends to natural gas. Pipeline exports to Chile and plans for liquefied natural gas development could expand Vaca Muerta gas reach. Floating liquefaction units would enable supply to South American regasification terminals, with Brazil representing one of the largest markets due to its demand and installed capacity.

Based on reporting from Mejor Energía.