Petroleo Brasileiro SA, YPF SA, and Dow Chemical Co. have launched a major gas processing/gas liquids utilization project in Argentina and Brazil.
The program calls for total utilization of natural gas liquids being produced in Argentina's Neuquen basin. The three firms will spend $630 million the next 3 years on work that is to start this year.
The project entails construction and operation of a 1.26 bcfd gas processing plant at Loma la Lata, Argentina, to recover ethane, propane, butane, and natural gasoline from Neuquen basin gas.
These NGL will be transported via a 600-km pipeline to a fractionation plant to be built at Bahia Blanca, Argentina. The ethane will be sold to Dow's petrochemical complex at Bahia Blanca, and the gasoline and propane-butane mix will be exported to Brazil.
Interests in a new operating company overseeing the project will be held by YPF 38%, Petrobras-through its subsidiary Brasoil-34%, and Dow 28%.
The new processing plant will guarantee supply of 516,000 metric tons/year of ethane for the Bahia Blanca petrochemical complex, as well as 615,000 tons/year of LPG and 188,000 tons/year of natural gasoline to be exported to Brazil.
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