Transportadora de Gas del Norte (TGN) is one of Argentina’s main natural gas transmission companies, operating a strategic pipeline network connecting production areas in the Neuquen and Northwest basins to core domestic demand centers and export routes. The system plays a crucial role in evacuating Vaca Muerta gas volumes, thereby supporting national supply security and regional gas flows.

The Northern Gas Pipeline reversal project has progressed through three stages to enable northbound gas flows:

• Phase I added 10 million cubic meters per day (MMcmd) through reversal works at the Leones and Tio Pujio plants and is already commissioned.

• Phase II increased capacity to 15 MMcmd via partial reversals at Ferreyra and Dean Funes, both commissioned.

• Phase III is expected to reach 19 MMcmd with the Tio Pujio to Ferreyra section in service, and definitive reversal works at Ferreyra, Dean Funes, Lavalle and Lumbreras currently underway.

The planned expansion of the Perito Moreno (ex-Nestor Kirchner) gas pipeline, including its second phase, won't proceed as initially planned. The focus shifts to a revised route connecting Tratayen to La Carlota, marking a significant change from last year. The goal remains to boost gas supply to Buenos Aires, northern Argentina, and export flows to Brazil and Chile. The new project proposes 20 MMcmd capacity from Tratayen to La Carlota, with 10 MMcmd for domestic use and another 10 MMcmd for export, supported by a 750 km, 36-inch pipeline. Export options include modular expansions in the TGN North pipeline, enabling 10 MMcmd of annual exports to Brazil via Bolivia. Expanding eastward through Uruguaiana, Brazil, requires additional investment to connect to Porto Alegre. The pipeline project is flexible, with an alternative plan for a 1,100 km, 30-inch bi-oceanic pipeline offering 10-20 MMcmd capacity.

Argentina exports steady gas flows to Chile, primarily to the central region, near the Neuquen gas production area. Flows started in October 2021, supported by several pipelines along the Chilean border. In Magallanes, southern Chile, up to 6.8 MMcmd of Argentine gas supplies regional methanol demand. Chile’s central area, with a higher population, can receive 14.2 MMcmd, while the north, with strong mining and power demand, can receive 16.5 MMcmd.

Transportadora de Gas del Sur (TGS) has revised its Perito Moreno pipeline expansion plans, opting to increase existing capacity from 21 to 35 MMcmd through the addition of three compressor stations, representing a $560 million investment. To support deliveries to demand centers, a further $200 million expansion of the Neuba II pipeline is planned, including a new compressor and a 20-kilometer parallel section. Both projects are expected to be completed by the first quarter of 2027 following TGS’s successful public tender.

As Argentina’s gas production is expected to exceed domestic demand by 2026, LNG export projects are advancing to monetize the output from Vaca Muerta. Pan American Energy and Golar LNG have taken final investment decisions on the Southern Energy FLNG project in Rio Negro, starting with a 2.45 million tonne per annum (Mtpa) facility in 2025 and followed by a second 3.5 Mtpa unit with partners including YPF, Harbour Energy and Pampa Energía. The first FLNG unit is expected to come online in summer 2027, with the second in 2028, supported by a dedicated pipeline from Neuquen.

In parallel, YPF is planning additional LNG developments under the Argentina LNG 2 and Argentina LNG 3 projects, which will require a second major pipeline. Overall, Argentina envisions two new gas pipelines: one with a capacity of 6 Mtpa (27 MMcmd) to support the Southern Energy FLNG project and a larger 18 Mtpa (81 MMcmd) pipeline for Argentina's LNG projects, reinforcing the country’s ambitions to become a significant global LNG exporter.

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Vinicius Romano
Vice President, Gas & LNG Research
vinicius.romano@rystadenergy.com

Gabriela Sanches
Analyst, Gas & LNG Research
gabriela.sanches@rystadenergy.com

Marina Siqueira
Analyst Intern, Gas & LNG Research
marina.siqueira@rystadenergy.com