TGS announces investment of $3B in Argentina NGL project

Transportadora de Gas del Sur (TGS) has announced a significant expansion of its natural gas liquids (NGL) infrastructure in Argentina, with a total investment of $500 million allocated to the Perito Moreno pipeline project. The initiative, approved in May 2025, aims to increase the pipeline's capacity from 21 million cubic meters per day (mcm/d) to 35 mcm/d by adding four new compressor stations, addressing a critical bottleneck in Argentina's energy logistics network. A second phase of the project, pending further funding, could add an additional 5 mcm/d, aligning with Argentina's goal to achieve net LNG exporter status by 2030.

The expansion complements YPF's parallel Vaca Muerta Sur crude pipeline, which is designed to transport 390,000 barrels of oil daily to coastal terminals. Together, these projects form a dual-transport corridor for gas and crude from the Vaca Muerta shale formation, Argentina's largest untapped hydrocarbon reserve. TGS's pipeline is positioned to supply gas to planned LNG export facilities, including a floating plant by Golar and Harbour Energy, while reducing domestic reliance on imported LNG.

Argentina's government has designated the project a "National Public Interest" initiative, offering tax incentives and foreign exchange exemptions to investors. TGS's collaboration with YPF and international oil majors, including Chevron and Shell, underscores the project's strategic importance. With the first phase of the pipeline now 75% operational, the infrastructure is expected to enhance Argentina's energy export capabilities amid growing global demand for LNG, particularly in Europe and Asia.

The project reflects Argentina's broader shift toward private-sector-led energy development under President Javier Milei's administration, which has prioritized attracting foreign investment to unlock the country's hydrocarbon potential.