Argentina’s YPF Tenders Pipes for Its Vaca Muerta Gas Line
Argentina · Energy
Key Facts
—Pipe Tender Launched Argentina’s YPF tendered a new 563-km gas pipeline from Vaca Muerta to Buenos Aires province, opening the door for major pipe suppliers to compete.
—Gas Expansion Boost The Tratayen–Salliqueló duct aims to carry 24 million m³/day, increasing national natural gas transport capacity by roughly 25%.
—Oil Export Financing Closed VMOS S.A. secured a US$2 billion syndicated loan from global banks to build a 570-km oil pipeline from Añelo to Punta Colorada on the Atlantic coast.
—Construction Consortium Awarded A Pumpco and Bonatti consortium won the Vaca Muerta–Sierra Grande gas duct construction contract over rivals including Techint.
—Long-Term LNG Bet YPF, Eni, and XRG signed a binding agreement for a US$25 billion Argentina LNG project, targeting 30 million metric tons per year of export capacity by 2031.
Argentina’s YPF has launched a pipe tender for a major Vaca Muerta gas pipeline while simultaneously securing bank financing for the VMOS oil pipeline, marking a decisive acceleration in the country’s shale export infrastructure build-out.
The Gas Pipeline Pipe Tender
Argentina’s state-controlled energy company YPF tendered a 563-km natural gas pipeline designed to move shale gas from the Vaca Muerta formation to Salliqueló in Buenos Aires province. The project would connect Tratayen in Neuquén with Salliqueló west of Buenos Aires, with bids due and scheduled to be opened on 8 July.
The initial phase is estimated at US$1.5 billion. Once operational, the line should transport roughly 24 million cubic meters per day (about 850 million cubic feet per day), expanding Argentina’s natural gas transport capacity by 25%. YPF will hold priority access to the new capacity.
Awarding the Vaca Muerta–Sierra Grande Duct
A parallel gas duct project, running from Vaca Muerta to Sierra Grande, was awarded to a consortium formed by Pumpco and Bonatti. That project, led by YPF alongside Eni and XRG, carries a price tag estimated at US$1.2 billion and represents one of the largest pipeline builds in two decades.
The tender had been viewed as a major opportunity for Argentine industrial group Techint and its pipe-making unit Tenaris. However, the winning bid went to the international consortium instead. Pumpco is owned by the controlling stakeholder of the Inter Miami football club.
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VMOS Oil Pipeline Financing
VMOS S.A., a special-purpose midstream pipeline company formed by YPF’s shareholders, closed a US$2 billion syndicated loan in July 2025. The financing was led by Citi, Deutsche Bank, Itaú, JPMorgan, and Santander.
The loan backs the Vaca Muerta Sur (VMOS) oil pipeline project, valued at roughly US$2.5 billion. The 570-km pipeline will run from Añelo in Neuquén to Punta Colorada on the Atlantic coast of Río Negro and is designed to carry 550,000 barrels per day. The shareholder group behind VMOS includes YPF, Pluspetrol, Pan American Energy, Pampa Energía, Vista, Chevron, Shell, Tecpetrol, and GyP.
Why This Matters
These parallel pipeline projects are critical for unlocking Argentina’s Vaca Muerta shale wealth. Lifting transport bottlenecks allows producers to ramp up output, displacing costly energy imports, improving the country’s trade balance, and creating a path to reliable export revenues.
For expats and investors, the fast-moving infrastructure rollout signals that Argentina’s energy sector is moving from potential to execution. The involvement of top-tier global banks and international construction firms adds a layer of institutional credibility to a market often viewed as high-risk.
The Broader LNG Export Vision
Pipeline construction fits into a broader export blueprint. On 12 February 2026, YPF, Eni, and XRG signed a binding joint development agreement for a massive liquefied natural gas project known as Argentina LNG. The initial phase targets 12 million metric tons per year of LNG exports.
The long-term plan envisions scaling up to 30 million metric tons per year of LNG export capacity from Vaca Muerta by 2031. One estimate puts the total required investment at roughly US$25 billion, underscoring the enormous scale of the export ambitions tied to these new pipelines.
More: Argentina news in English, every day from The Rio Times.
Frequently Asked Questions
What is the new Vaca Muerta gas pipeline YPF just tendered?
YPF tendered a 563-km natural gas pipeline from Tratayen in Neuquén to Salliqueló in Buenos Aires province. Estimated at US$1.5 billion, it is designed to carry 24 million cubic meters per day.
Who won the Vaca Muerta–Sierra Grande pipeline construction contract?
A consortium formed by Pumpco and Bonatti won the contract, beating out competitors like Techint and Sacde. The US$1.2 billion project is led by YPF, Eni, and XRG.
How is the VMOS oil pipeline being funded?
VMOS S.A. secured a US$2 billion syndicated loan led by Citi, Deutsche Bank, Itaú, JPMorgan, and Santander. The loan closed in July 2025 and finances a 570-km oil conduit to Punta Colorada on the Río Negro coast.
Sources: Chambers – Vaca Muerta Sur Pipeline Project: USD 2 billion Syndicated Loan, Enerdata – VMOS signs US$2bn loan for 550 kb/d pipeline project in Argentina, Derecha Diario – Vaca Muerta: YPF advances with the construction of the largest pipeline in two decades, La Nación – El dueño del Inter Miami y una italiana le ganaron a Techint, Reuters – Argentina’s Vaca Muerta gas export plan is a pipe dream?, Bloomberg Law – Argentina Drillers Mandate Global Banks for $1.7B Pipeline Loan
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