Argentina is laying the steel that will carry its shale gas to the sea, so that tankers can ship it to the world. On Sunday, 8 November 2026, the San Matías pipeline was under construction, with pipe moving along the route and first excavations done.
The project is meant to turn Vaca Muerta, a major shale formation in Patagonia, into an export business for liquefied natural gas (LNG), gas chilled into a liquid for ships. It matters to US readers because YPF, Argentina’s state-controlled oil company listed on the New York Stock Exchange, is a partner in the export venture.
Key Facts
—What. Construction of the 472 km San Matías gas pipeline has started in Argentina. Cost: about US$1.3 billion.
—Where. It links the Vaca Muerta shale gas field in Neuquén province to the Atlantic coast of Río Negro.
—Capacity. Up to 27 million cubic metres of gas a day, for two floating LNG plants.
—When. Completion is planned for around mid-2028; the project holds approval under Argentina’s RIGI investment regime.
—Power Index. Argentina ranks 4th of 14 in The Rio Times Latin America Power Index, with 60.2 points (November 2026 edition).
A US$1.3 billion pipeline of 472 km is rising across Patagonia, and it will decide how fast Argentina can sell gas abroad. The line is due to finish around mid-2028.
What Happened
San Matías Pipeline, the company building the line, has begun moving 36-inch steel pipes by truck from the port of San Antonio Este to staging areas along the route. The Río Negro provincial government said on 5 October 2026 that the first excavations had also started.
The line will run 472 km from Vaca Muerta to the Gulf of San Matías, in Río Negro. It is designed to carry up to 27 million cubic metres of gas a day, according to the provincial government.
Argentina’s Economy Ministry approved the project in June 2026 under RIGI, a regime that gives large investments tax and currency benefits. On 28 August 2026 the provincial government said San Matías Pipeline had closed a US$900 million international bank loan, about 70% of the cost.
Who Is Behind It
Southern Energy, an Argentine export consortium, will use the gas for two floating liquefaction ships anchored in the gulf. Its partners are Pan American Energy (a large Argentine oil company), YPF, Pampa Energía (an Argentine power and gas producer), Harbour Energy (a British oil company) and Golar LNG, a floating-LNG specialist.
The two ships have a combined capacity of close to 6 million tonnes of LNG a year. The provincial government expects the whole project to exceed US$15 billion of investment over 20 years.
Regional lenders such as Bladex have already backed the venture, as our report on the Bladex loan to Southern Energy shows. Bladex is a Latin American trade bank.
Why It Matters
Argentina has the gas but lacks the export infrastructure to sell it beyond South America. A dedicated line gives that gas a route to the coast, as our earlier report on the Vaca Muerta oil and pipeline loan showed.
For the United States, new LNG supply from the Southern Hemisphere adds competition for buyers in Europe and Asia. It also gives US investors in YPF a clearer view of the timeline, which we followed in YPF’s LNG contracts.
What Happens Next
The pipeline is due to be finished around mid-2028, according to the Río Negro government. The two floating plants and the line will have to move in step before any cargo can sail.
Further pipe shipments will arrive at San Antonio Este through the coming months. The project will also need contracts as buyers sign for cargoes.
What Is Not Known
The exact date of the first LNG cargo has not been confirmed by the companies in the documents we could check. The cost of the full project may also change as construction advances.
We could not confirm independently when pipe welding began or which contractor leads it. We have left both out until the company or the province publishes them.
What It Means for You
If you follow energy stocks, watch YPF and its partners for updates on financing and delivery dates. A line this size takes years, so short-term price moves are more likely to come from announcements than from gas actually flowing.
Travellers in Patagonia may see more pipe trucks on the roads of Río Negro. A local cooperative, RioQuen, has put nine trucks on the pipe haul.
Frequently Asked Questions
Which pipeline has started construction in Argentina?
It is the San Matías pipeline, 472 km long, from Vaca Muerta to the Gulf of San Matías. It will carry gas for two floating LNG plants.
How much does the San Matías pipeline cost?
The estimated cost is about US$1.3 billion. About US$900 million comes from an international bank loan, according to the Río Negro government.
When will the gas pipeline be finished?
Completion is expected around mid-2028, according to the Río Negro government. Dates can slip on large projects like this one.
Sources
Government of Río Negro province, pipeline and excavation statement (5 October 2026) and financing statement (28 August 2026); Argentina Economy Ministry RIGI approval (June 2026). Read on 8 November 2026.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error