First Argentine gas flows to Uruguay through Southern Cross system

By OGJ editors

HOUSTON, Nov. 25 -- First natural gas from Argentina commenced flowing Nov. 8 through the $160 million Gaqsoducto Cruz del Sur (GCDS), or Southern Cross pipeline. BG Group operates the pipeline under a 30-year concession agreement awarded by the Uruguay government in March 1999.

Uruguay's state electricity utility, UTE, will serve as the primary customer for the gas, which it will burn in its power plant at Montevideo. UTE signed a long-term gas sales and supply agreement with Pan American Energy LLC and Wintershall AG. Later, the capital's local distribution company, Gazeba Uruguay SA, and Conecta SA, the distribution company for the rest of the country, are expected to become customers for the gas and therefore use less manufactured gas and LPG.

The 193 km, high-pressure GCDS system has the capacity to deliver 5 million cu m/day. The system also includes 200 km of low-pressure laterals, of varying diameters, and 28 aboveground installations. A separate 40 km, 18-in. line—known as the "Link"—was completed in April at a cost of $18 million. The Link connects the start of GCDS pipeline in Argentina with the Argentine national grid.

BG holds 40% interest in the system. Other partners are Pan American 30%, Uruguayan state oil firm Administration Nacional de Combustibles, Alcohol y Portland, (Ancap) 20%, and Wintershall 10%.

"As well as fulfilling a key economic need for the markets of Montevideo, the pipeline is a remarkable new example of cross-border infrastructure projects," said BG Executive Vice-Pres., South America, Rick Waddell.

Related Articles

Watching Government: Propane's 'perfect storm'

03/17/2014 If anyone wants to consider where oil and gas product distribution can go haywire, the recent domestic propane "perfect storm" bears exam...

Winter weather effects


Much of the US has experienced unrelenting cold weather during January and February.

Energy optimization drives design for Saudi Aramco NGL-recovery plant

02/03/2014 Designing a grassroots NGL-recovery plant in the empty quarter of Saudi Arabia required formulation of energy optimization initiatives because the ...

US C3 balances to tighten, prices to rise over winter months

11/04/2013 Propane supply-demand balances in US markets are poised to be much tighter in winter 2013 than during winters of 2011 and 2012. Tighter supply-dema...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected