Argentina plays midstream waiting game

The arrival of additional gas takeaway capacity this year is welcome news for E&Ps, but much more will be needed if the Vaca Muerta is ever going to replicate US shale

This year is set to be crucial for cash-strapped Argentina. Despite the government setting ambitious oil and gas targets, growth in the Vaca Muerta shale basin is dependent on the arrival of the Nestor Kirchner gas pipeline in 2023 and the building out of more midstream takeaway capacity before the end of the decade. The first stage of the pipeline is projected to come online on 20 June, adding another 11mn m³/d of exit capacity and—barring any delays—saving Argentina from another winter of discontent. Last year, the government was forced to fill the supply gap by importing the equivalent LNG at heavy excess cost. “There are a lot of hurdles, but we have not identified anything yet that make