Energía Argentina, Argentina’s state hydrocarbon developer, said it signed a contract with SIAT S.A. last Thursday for the provision of pipes for the President Néstor Kirchner Gas Pipeline and its complementary works.
The contract consists of a purchase of 582 kilometers (362 miles) of pipelines that are 36 inches in diameter, and 74 km (46 mi) of pipes that are 30 inches in diameter. They will be used for the first stage of the gas pipeline between Tratayén in Argentina’s Neuquén province, and Saliquelló in the Buenos Aires province.
This is part of a larger pipeline project from the government of Argentina. In all, it will construct over 1,000 km of pipeline to transform its fuel transport capacity for export and domestic purposes. According to the Pipeline Technology Journal, the entire project is set to cost US$1.5 billion.
Energía Argentina said the pipeline will expand the capacity of the Argentine natural gas transmission system by 25%, fundamental for the development of production at the Vaca Muerta – one of the world’s largest shale gas deposits. The pipeline will allow that resource to reach the large consumption centers of the country.
The state producer’s President, Agustín Gerez, said at the signing that it represents a fundamental milestone for the “transformative” project, marking Argentina’s course for 25 years and leading it toward energy sovereignty.
“The Presidente Néstor Kirchner gas pipeline will make it possible for residential, commercial and industrial sectors of our country to access energy at competitive prices, which due to the international situation became a critical input, thus boosting employment and production,” Gerez explained.
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According to the official webpage established by the state producer for the pipeline, the project will create thousands of jobs
SIAT is owned by Tenaris, which calls itself the world’s leading producer of seamless and welded steel pipes for the global energy industry, save over US$1 billion annually in foreign exchange, and result in tens of millions of dollars in additional royalties to the state.
Argentina’s President, Alberto Fernandez, has said there is an urgent need for the pipeline because the world has settled on natural gas as necessary for its transition to renewables.
