Argentina has announced a tender process for construction of a new gas pipeline from its Vaca Muerta shale formation.
With this pipeline project, the existing transport capacity is expected to boost by 25%, reported Reuters.
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The Vaca Muerta shale formation, which is claimed to be the size of Belgium, is the fourth-largest shale oil reserve in the world and the second largest for shale gas.
According to a publication in the country’s official gazette, the firms can submit their bids until 8 July.
This 563km long pipeline will link the province of Neuquen with Salliquelo, an area located west of Buenos Aires, upon its completion.
The project is estimated to cost $1.5bn.
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By GlobalDataIt would take about 18 months to finish the construction of this project.
Argentina intends to reverse the energy deficit and bring in fresh wave of foreign currency through gas exports.
In April, the Argentine province of Neuquen gave a new concession for shale exploitation in the Vaca Muerta formation to the US oil company Chevron.
The firm secured the concession as operator and holder of the 282.8km2 El Trapial Este block with a pilot stage investment of $78.7m.
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Image : The firms have time to submit their bids until 8 July. Credit: David Mark from Pixabay .
