Argentina has allocated a $900 million loan for the construction of an LNG pipeline

The San Matías Pipeline consortium has reportedly received a $900 million loan for the construction of a 472-kilometer pipeline that will connect the Vaca Muerta shale formation in southern Argentina with the coast of Rio Negro province.

The diameter of the pipeline will be 36 inches. Its construction is expected to require about 200,000 metric tons of API-compliant steel sheets. The Indian company Welspun won the tender for the supply of pipes in January.

The consortium includes Pan American Energy, YPF, Pampa Energy, Harbour Energy and Golar LNG.

The loan was provided by Citi, J.

P. Morgan, Santander and Itaú, while BBVA, Bladex, Barclays, ICBC and Bank of China also joined the banking syndicate.

Construction of the pipeline began this month and is expected to be completed by mid-2028. At that time, it is planned to transport 27 million cubic meters of gas per day to supply two floating LNG plants, which will allow Argentina to strengthen its position in the large-scale LNG export market.