The new credit will go to a major project to expand the capacity of the privately-run gas pipeline system over the next three years. The project is reported to involve laying over 1million km of pipes, and installing and refurbishing compressors to add 67,000HP to the system, according to a government announcement in April this year. The added capacity will make it
possible for producers to get more gas to market, helping alleviate bottlenecks that are threatening the slow the economy.
Argentina produces 140m cum/d of gas, but only has 126m cum/d of pipeline capacity in the country. It exports the excess to Brazil, Chile, and Uruguay. Some analysts say another 30m cum/d of pipeline capacity is needed on top of the 20m that is now going to be added. Mr De Vido also added that there would be “important announcements about the construction of the Northeast Pipeline” at a planned meeting between Argentine President Nestor Kirchner and his Bolivian counterpart Evo Morales. Argentina wants to build the $1-billion Northeast Pipeline to import around 20m cum/d of additional gas from Bolivia: it is currently importing 7.7m cum/d under a contract that expires at the end of 2006, helping to meet domestic demand.