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    Tenaris lands deal to supply pipes for Vaca Muerta line

Summary

The Luxembourg-based company was the sole bidder in a tender for the contract.

by: NGW

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Tenaris lands deal to supply pipes for Vaca Muerta line

Luxembourg-based Tenaris has landed a deal to supply pipes to build the Presidente Nestor Kirchner gas pipeline that will enable Argentina to expand gas flow out of the Vaca Muerta shale play, the company said on June 17.

The contract secured from Energia Argentina follows a tender, where Tenaris emerged as the sole bidder. Courts are expected to investigate how the contest was carried out, however, prompting concerns that the project could be delayed.

The 563-km, 24mn m3/day pipeline will connect the province of Neuquen with an area west of Buenos Aires, Salliquelo, increasing Vaca Muerta's transmission capacity by 25%. The extra gas flow will be used to satisfy domestic demand.

The pipes will be manufactured at Tenaris' mill in Valentin Alsina, Buenos Aires.