Argentina has approved state-owned energy company YPF to participate in a government incentive program that will provide funding for a major pipeline connecting the vast Vaca Muerta shale formation to a port in Rio Negro province, Economy Minister Luis Caputo announced on Friday.
The pipeline, estimated to require nearly $3 billion in investment, is expected to generate over $15 billion in annual oil exports once operational, according to Caputo’s statement on X.
YPF is leading the development of this strategic project in partnership with global energy firms, including Shell, Chevron, Vista, and Pan American Energy. The consortium applied for access to government incentives last year, as part of President Javier Milei’s broader initiative to attract significant foreign and domestic investments and revitalize Argentina’s struggling economy.
With Vaca Muerta ranked as the world’s second-largest shale gas reserve and fourth-largest shale oil reserve, Argentina aims to solidify its position as a key energy exporter in the global market.