VMOS S.A., a consortium of leading energy companies in Argentina, has awarded the Techint-SACDE joint venture the contract to build the country’s most significant energy infrastructure project in the last 50 years.

The project involves constructing and installing a 437-kilometer oil pipeline across the province of Río Negro, Argentina. With a 30-inch (76.2 mm) diameter, the pipeline is divided into two main sections: the first stretches 100 kilometers from Allen to Chelforó, while the second extends 327 kilometers from Chelforó to Punta Colorada.

Construction began in February 2025 after securing the necessary environmental and legal permits. Operations are expected to commence in 2026.

Executing a project of this scale within the planned timelines requires cutting-edge technology, including automated welding and a double-joint plant. The task also presents significant technical challenges, such as completing 22 special crossings. Two of these will use Horizontal Directional Drilling (HDD) technology, one to pass under an irrigation canal at km 247 and another beneath the Río Negro at km 249.

The project is expected to generate over 2,000 direct jobs, along with a significant number of indirect employment opportunities, boosting the local economy.

Impact of VMOS on the Energy Industry

VMOS has joined the Large Investment Incentives Regime (RIGI in Spanish), making this the first project in Argentina’s hydrocarbon industry to qualify for the new investment promotion framework.

The pipeline will play a vital role in expanding crude oil evacuation and export capacity from the Vaca Muerta formation. Once operational at the end of 2026, it’s expected to boost Argentine oil exports via the Atlantic by more than 380,000 barrels per day (bpd). With the planned addition of two new pumping stations, projections suggest this figure could climb to 690,000 bpd.

About the joint venture

The Techint-SACDE joint venture has a proven track record in delivering large-scale energy infrastructure projects through collaborative development. Recent achievements include the construction of the Perito Moreno Gas Pipeline (573 km, 36-inch diameter), the reversal of the Northern Gas Pipeline (100 km, 36-inch diameter), and the oil pipeline for Oldelval S.A., (250 km, 24 and 30-inch diameters).

The ongoing efforts of Techint and SACDE in the development of the Vaca Muerta Oil Sur Pipeline reflect their commitment to expanding Argentina's energy infrastructure, driving economic growth and creating jobs in the region.