San Matías Pipeline secures $900 million for Vaca Muerta-to-LNG gas pipeline
San Matías Pipeline has closed a $900-million loan to finance construction of a gas pipeline to carry natural gas from Argentina's Vaca Muerta formation to the floating liquefaction units Southern Energy plans to deploy off the coast of Río Negro.
The financing covers nearly 70% of the project’s estimated $1.3-billion investment. Citi, JP Morgan, Santander, and Itaú led the transaction, alongside BBVA, Bladex, Barclays, ICBC, and Bank of China.
The remaining $400 million will be contributed by the consortium’s shareholders: Pan American Energy, YPF, Pampa Energía, Harbour Energy, and Golar LNG.
The 472-km, 36-in. OD San Matías Pipeline, which will originate at Tratayén, one of Vaca Muerta’s main gas hubs, is designed to transport 27 million cu m/d (MMcmd) of natural gas, aligned with the gas requirements of the two FLNG units.
Hilli Episeyo will have LNG production capacity of 2.45 million tonnes/year (tpy) and will require about 11.5 MMcmd of feed gas. Esperanza, previously known as MKII, will add another 3.5 million tpy and require close to 16 MMcmd of feed gas. Hilli Episeyo is expected to begin operations in 2027, followed by Esperanza in 2028.
The project also will include a compressor station with about 46,000 hp of installed capacity to maintain required pressure and flow across the system.
Pipeline construction has been awarded to the SICIM-Víctor Contreras consortium, while OPS will be responsible for the Allen compressor station. IEB Construcciones was selected to manage and coordinate the project’s different construction fronts.
In August, the first 36-in. line pipe manufactured in India began arriving at the Port of San Antonio Este.
Construction is scheduled to begin in August 2026, with completion targeted for mid-2028.
The project was admitted to Argentina’s Large Investment Incentive Regime (RIGI) in June and has environmental impact approvals from Neuquén and Río Negro provinces.
About the Author
Camilo Ciruzzi
South America Correspondent
Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.