Argentina's TGS to invest $3 bln in natural gas liquids project

By Eliana Raszewski and Rodrigo Campos

NEW YORK/BUENOS AIRES, March 11 (Reuters) - Argentine energy firm Transportadora de Gas del Sur (TGS) said on Wednesday it will invest $3 billion in a new natural gas liquids project in the Vaca Muerta shale formation.

The project, to be developed over almost four years, is expected to generate approximately $1.2 billion in annual exports.

The company plans to submit the project to a large-scale investment incentive scheme, known as RIGI, introduced by President Javier Milei's administration.

"The project is critical; it is essential for Vaca Muerta to continue developing and reach the target of 1.5 million barrels per day by 2031-2032," Marcelo Mindlin, chairman of Pampa Energia, which co-controls TGS, said at a press conference in New York.

Argentina is seeking to massively develop Vaca Muerta, the world's second-largest unconventional gas reserve, to boost foreign exchange earnings and reduce its dependence on energy imports. Vaca Muerta is located in the province of Neuquen, in the west of Argentina.

The project includes new gas-processing facilities at the company's Tratayen plant and the construction of a multi-product pipeline connecting the facility to the Bahia Blanca port.

TGS said it will fund part of the investment with its own capital, and is working with international banks to secure the remaining financing.

Economy Minister Luis Caputo was present at the investment announcement during his trip to New York to participate in "Argentina Week," an event aimed at attracting new investments to the country.