GENERAL ROCA, Río Negro – A major infrastructure project in Argentina reached a key milestone on March 20, 2026, with the successful installation of a pipeline 40 meters beneath the Río Negro riverbed. The completion of this technically challenging segment paves the way for the final stages of the Vaca Muerta Oil Sur (VMOS) pipeline, designed to boost the country’s oil export capacity.
The 437-kilometer pipeline will connect the Vaca Muerta shale formation to a port terminal in Punta Colorada, Río Negro. Even as initial operations are slated for November, the first oil exports aren’t expected until late January or early February. Filling the pipeline and its two accompanying storage tanks – a process requiring 1.2 million barrels – will take at least 30 days, according to project officials.
“From the moment the first drop of oil is transported to when it’s exported on a ship, it could take two to two and a half months, because you also have to fine-tune the entire system,” explained Gustavo Gallino, president of the VMOS consortium and vice president of Infrastructure at YPF, during a ceremony commemorating the achievement.
Argentina currently produces 882,000 barrels of oil per day, with 570,400 barrels destined for domestic employ and approximately 300,000 barrels exported. The industry aims to reach 1 million barrels of daily exports by 2028, once the VMOS pipeline is fully operational. The pipeline has a capacity to transport up to 550,000 barrels per day by the second half of 2027, with potential to expand to 700,000. This builds on a previous expansion by Oldelval, which increased the capacity of the pipeline connecting the Neuquén basin to Bahía Blanca to 540,000 barrels per day.
Río Negro was chosen as the export point due to the depth of its waters, which allows access for Very Large Crude Carriers (VLCCs) – ships capable of transporting around 2 million barrels. This represents expected to reduce freight costs by $1 to $3 per barrel, potentially saving up to $2 million per shipment and opening up modern international markets for Argentine crude.
The entire pipeline was constructed by the UTE Techint-Sacde consortium, which was also responsible for a significant portion of the Perito Moreno gas pipeline and the reversal of the northern gas pipeline. The same consortium is currently bidding on two major energy infrastructure projects: a 478-kilometer, 36-inch gas pipeline for liquefied natural gas (LNG) exports, and a 575-kilometer, 20-inch poliduct for the export of liquid gases like ethane, butane, propane, and natural gasoline, spearheaded by TGS.
Marcelo and Damián Mindlin, founders of Sacde and principal shareholders of Pampa Energía and TGS, expressed optimism about the sector’s outlook. “Foreign investors still seek to observe locals take the first step and craft the initial investments,” said Marcelo Mindlin, who recently announced investments of $4.5 billion through Pampa Energía and an additional $3 billion with TGS to expand exports of liquid gases.
Mindlin also addressed the international context: “The price of oil and gas is at a peak due to the uncertainty generated by the war in the Middle East, but this is temporary. European countries should appear to Argentina as an alternative supplier, something Germany already did by signing the first contract to purchase LNG with Southern Energy (SESA).”
The businessman, who participated alongside President Javier Milei and his economic team at the Argentina Week event in New York, emphasized the role of infrastructure as an economic engine and job creator, but declined to comment on the overall economic situation. “Ask the economists how the activity is. entrepreneurs talk about the level of investment,” he said.
Representatives from Techint Ingeniería y Construcción highlighted the challenge of leading Argentina’s largest crude oil transport project in recent years. Alejo Calcagno stated, looking ahead to upcoming bids, “We are competitive and submit very solid technical offers.”
Carlos Bacher, chairman of Techint, noted that Argentina is experiencing a greater degree of macroeconomic order, although with uneven impacts across sectors. While areas like oil, gas, and mining are showing growing dynamism, other activities are progressing more slowly. “We have focused our activity on private clients for many years; we haven’t done essential public works in Argentina for 20 years. We see all of this in a quite ambitious way,” he said.
