Argentina has permitted YPF to access a stimulus program for a nearly $3 billion pipeline project from Vaca Muerta to Rio Negro port, expected to generate over $15 billion in annual oil exports. This initiative is part of President Milei’s strategy to attract significant investments and improve the economy.
The Argentine government has granted state-owned oil company YPF access to a stimulus program designed to facilitate a major pipeline project. This initiative, disclosed by Economy Minister Luis Caputo, will channel funds for a pipeline connecting the vast Vaca Muerta shale formation to a port situated in the Patagonian province of Rio Negro.
The pipeline project is projected to require an investment of nearly $3 billion and is anticipated to generate over $15 billion in oil exports annually once operational. Caputo shared this information via a post on social media platform X.
YPF is collaborating with several partners including Shell, Chevron, Vista, and Pan American Energy in the development of this project. The consortium applied for governmental support as part of President Javier Milei’s strategy to attract significant investments and revitalize the struggling economy.
Argentina aims to solidify its position as a net energy exporter, capitalizing on the Vaca Muerta formation, which is recognized as the world’s second-largest reserve for shale gas and the fourth-largest for shale oil.
The Argentine government’s approval of the stimulus for the YPF pipeline project represents a significant step in enhancing the country’s energy infrastructure. This initiative not only aims to boost oil exports but also aligns with broader economic revitalization efforts under President Javier Milei’s administration. By leveraging the potential of the Vaca Muerta shale formation, Argentina seeks to establish itself as a robust energy exporter on the global stage.
Original Source: www.tradingview.com
