Argentina inaugurated the first phase of a gas pipeline that will transport natural gas from western Argentina to Santa Fe Province via Buenos Aires Province to boost gas supplies and meet the large energy deficit.
The Vaca Muerta, a massive rock formation the size of Belgium located in Patagonia, is seen as key to boosting the South American country’s gas supplies and reducing the need for imports.
Argentina, whose central bank foreign exchange reserves have dwindled to dangerously low levels, posted a $5 billion energy trade deficit in 2022 because it needs to import energy during its highest consumption months.
The completion of the first phase of the gas pipeline, which starts in Neuquén Province and reaches Buenos Aires Province, adds 11 million cubic meters of gas per day.
This number will double when the compression stations are installed in Tratain, in Neuquén Province, and in Salicillo, in Buenos Aires Province.
The inauguration comes as the ruling Peronist party aims to hold on to power in the upcoming October elections as the country suffers from 114% inflation.
