How is the bidding process for the work going?

2023-10-03 03:15:00

Looking ahead to the coming winter, the Reversal of the Northern Gas Pipeline is a priority work for the country due to the uncertainty generated by gas supply for the northern provinces. For this reason, Enarsa seeks expedite the bidding process to achieve the start-up of the work in May 2024. It is a challenge against the clock that, once completed, will reduce expenses on imports and allow Vaca Muerta’s contribution to increase.

Sources of Energía Argentina SA (Enarsa) confirmed to Power On whatsand enabled weekends and holidays as business days, to complete the bidding process as soon as possible and meet the expected deadlines. It is planned to arrive next winter with the Guaranteed gas supply for the northern provinces.

The thing is The region is going through a critical situation explained, in part, by the decline of the Northwest basin. To stimulate their production, they allocated incremental volumes in the region as part of the Gas Plan. Added to the situation low production that translates into low gas shipments from Boliviawhose contract with Argentina ends at the end of June 2024 and will not be renewed.

Last Friday the envelopes were opened with the first offers to move forward with the work. Two companies and a Transitory Business Union (UTE) were presented: Pumpo Inc., BTU and the TEchint Sacde joint venture. The last two participated in the construction of the Néstor Kirchner Gasduct, while the first is a United States firm with extensive experience in the field.


Reversal of the Northern Gasduct: “Now the evaluation continues”


The tender includes three lines. The first covers the reversal of the direction of gas injection of four compressor plants, two loops (expansions) and the construction of the final 22 kilometers of the Tío Pujio-la Carlota gas pipeline. The second corresponds to the section from kilometer 0 to 50, 36 inches in diameter and the line 3from kilometer 50 to 100 also 36 inches.

Last week envelope 1 was opened, which corresponds to the information of the company and its background in the matter. With its evaluation, observations and a possible challenge may arise if companies do not meet the criteria established to present themselves. This will be followed by the opening and analysis of envelope 2, where are the economic proposals for each line.

“Now the evaluation continues,” they expressed from Enarsa. There is still no estimated date for the award, but «This week we will know how it goes«, they detailed.

He total cost of the project is 712.78 million dollars. Of this amount, 540 million correspond
still credit from the Development Bank for Latin America and the Caribbean (CAF), which is equivalent to 75.8%. The remaining 24.3% correspond to financing from the export account of the Wholesale Electricity Market Stabilization Fund (Cammesa). It will be 172.78 million dollars.

For the works themselves, 707.3 million dollars will be allocated. The remaining 5.4 million will be allocated to administrative and financing expenses, according to a CAF document accessed by this media. It is worth noting that These amounts could go through an update process due to the devaluation of the peso and inflation, since Enarsa established them on June 1.


Reversal of the Northern Gasduct: The objectives of the work


According to the CAF document, The objectives of the work are divided into three parts. The first points to allow gas flow bidirectionally to guarantee the supply of the provinces of the Central and Northern regions of the country. They are planned about 20 MMm3 per day of gas from the Neuquén Basin.

The second objective bets on enable the supply of gas to the north of the country through the existing Central – West Gas Pipeline when changing direction from south to north. Thus, gas imported from Bolivia would be replaced with gas from the Neuquén Basin. The work contemplates savings of 1,960 million dollars.

The third objective aims to export surplus natural gas to Chile, Bolivia and Brazil, once the works on the President Néstor Kirchner Gasduct have been completed. In fact, this work is part of the complementary works of Stage 2 of this gas pipelinewhich will link the Buenos Aires town of Salliqueló with San Jerónimo, south of Santa Fe.

Without a doubt, the work means good news for the industry, particularly for Vaca Muerta. The availability of local natural gas is conditioned by the transportation capacity from the Neuquén Basin.. Now, with this work, section 2 of the Néstor Kirchner Gasduct and the compressor plants of section 1, production will have greater room for growth.


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