CABEI backs expansion of natural gas transportation capacity in Argentina

Tegucigalpa, September 1st, 2023.- With the purpose of strengthening national energy security and sovereignty, as well as increasing the transportation capacity of greater volumes of unconventional gas production in the Republic of Argentina, the Central American Bank for Economic Integration (CABEI) approved a US$185.0 million financing to its member country for the " President Néstor Kirchner Gas Pipeline Complementary Works Construction Project: Additional Compression on Stage 1 Tratayén-Salliqueló."

The works scheduled for completion in 2026, which will directly benefit more than 800,000 people, will significantly increase the transportation of natural gas from 20 million cubic meters per day to 29.6 million cubic meters per day, contributing to the country's competitiveness and energy development, improving service supply at the residential and industrial levels, and generating savings by reducing the flow of natural gas imports.

The initiative includes the construction of a gas compressor plant in the town of Chacharramendi, in the province of La Pampa, the expansion of the Tratayén and Salliqueló plants, as well as the purchase and installation of four turbo compressors of 15,000 horsepower each, which will be distributed and installed in those plants.

This operation, supported by CABEI, is part of Argentina's "2030 National Energy Transition Plan", which is focused on achieving the transformation of the energy system from fossil fuel production to low carbon (or zero emissions), with the use of its reserves and current energy infrastructure, the development and promotion of renewable energy projects, energy efficiency, green hydrogen, sustainable mobility, among others.

The financing terms are established for a 20-year term, including a five-year grace period and a competitive interest rate.