Vaca Muerta advances with exports, infrastructure and a renewed safety debate

Vaca Muerta is going through a shale gas expansion phase, with projects aimed both at LNG exports from Río Negro and at supplying Chile. Against that backdrop, San Matías Pipeline closed a USD 900 million syndicated loan under the Project Finance model to build the first dedicated pipeline of Argentina's export plan.

The project will require a total investment of USD 1.3 billion and will connect Tratayén, in Neuquén, with the liquefaction vessels planned along Río Negro's Atlantic coast. Meanwhile, Southern Energy agreed with Germany's SEFE to sell two million tonnes of LNG per year over eight years, with deliveries scheduled to begin in late 2027.

The regional agenda also gained momentum during the Biobío-Neuquén Binational Meeting, held in Concepción. Governor Rolando Figueroa agreed to establish a permanent technical roundtable to advance energy, trade and logistics integration with Chile. Neuquén argued that the Gasoducto del Pacífico currently operates below 10% of its capacity and that gas from the basin could prove more competitive than imported LNG.

To support that goal, the province announced that paving of the Pichachén pass will begin in March and is carrying out works on more than 200 kilometers of roads linked to the bi-oceanic corridor. It is also pushing a 750-kilometer road network to connect towns, international border crossings and productive areas.

Within the basin, the debate over costs added tension between Halliburton and its Neuquén-based suppliers. The company had announced cuts of up to 23% in existing contracts, but later said it would open individual negotiations and review each case. The move had prompted a joint response from the provincial government, the oil workers' union and local SMEs.

The growth of activity was also overshadowed by two deaths that occurred on August 25 in Rincón del Mangrullo. Jonathan David Meliqueo died at the scene, and Cristian Ariel Latorre died later during air evacuation. A preliminary report from the fire department pointed to a possible mechanical explosion linked to overpressure in a 12-inch pipeline as the cause, though the investigation must still determine the origin of the failure and any potential liability.

The incident added to other recent accidents in the basin, including the death of Darío Ruiz in May and injuries suffered by three workers at El Trapial in August. Vaca Muerta's expansion thus faces the challenge of increasing production and cutting costs without letting the pace of growth raise operational risks.

With information from Mejor Energía.