OPIS Global LPG: Argentina’s TGS to Treble NGL Output with Vaca Muerta

HOUSTON, Texas – Excelerate Energy and Transportadora de Gas del Sur (TGS) have announced plans to expand natural gas liquid (NGL) output by more than threefold from the Vaca Muerta project, with a final investment decision (FID) expected in the first quarter 2026, TGS NGL business manager Diego Freire told delegates at the OPIS LPG conference in Houston Friday.

The first stage of the project will build on the existing pipeline network and gas processing infrastructure. But an additional 577 km of Y-grade pipeline will be installed, taking product from the Vaca Muerta gas fields in Tratayén and linking it to the existing facilities at Bahia Blanca.

NGL production was slated to reach around 2.8 million metric tons/year in the first phase of the project, Freire showed. Additionally, ethane production could reach 2 million mt/year from the project, he added.

The project also offered potential expansion plans with NGL output adding an extra 4.7 million mt/year to the 2.8 million mt/year slated in phase 1. Should the FID be awarded, TGS expects NGL production to reach around 10.9 million mt/year by 2030, up from 3 million mt/year in 2025.

Last year, TGS’ Bahia Blanca terminal produced approximately 400,000 mt of ethane, 100% of which was used for the domestic market. The plant also produced 450,000 mt of LPG – 50% was exports and 50% kept for the domestic sector. Additionally, 150,000 mt of gasoline was produced, all of which was exported, TGS showed.

Very Large Gas Carriers (VLGCs) can access the berths at the port of Bahia Blanca. Argentina exported a record volume of propane and butane in 2024 — 850,000 mt – according to data from shipping analytics firm Vortexa. In the first 10 months of the year, exports totaled 698,000 mt, with Bahia Blanca shipping 89% of the country’s tonnage.

Approximately, 80% of Argentina’s LPG exports have stayed within South America, mostly heading to Brazil, while just over 11% was shipped to Africa.

–Reporting by Jamie Aldridge, jaldridge@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com

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