Techint loses another key Vaca Muerta tender, shut out of multi-million gas pipeline

Argentine multinational the Techint group suffered a new reverse in the domestic energy sector after failing to secure a key tender to construct a strategic gas pipeline linked to the development of Vaca Muerta shale and the export of liquefied natural gas (LNG).

The project was awarded to a transitory union of the Argentine company Víctor Contreras and the Italian firm SICIM competing as the San Matías Pipeline consortium, which undercut the Techint/SACDE offer.

The winning consortium bid US$533 million for the pipeline and US$96 million for the compression plant, whereas Techint –the runner-up in the tender among the five firms competing - sought US$85 million for both.

The consortium running the project as a whole – consisting of Pan American Energy, YPF, Pampa Energía, Harbour Energy and Golar LNG – unanimously decided in favour of San Matías Pipeline after a digital tender process that included the envelopes being opened in the presence of a public notary.

 The project contemplates the construction of a 471-kilometre gas pipeline connecting Vaca Muerta (Tratayén, Neuquén Province) with the San Matías Gulf in Río Negro Province to feed the LNG exports of Southern Energy.

The total estimated investment will be around US$1.3 billion and the pipeline will be a key vehicle for transporting around 27 million cubic metres of gas daily for export.

Apart from the blow of losing the construction of the gas pipeline, Techint was also blocked from the business of supplying the 36-inch tubing for the project in another previous tender early this year which triggered strong tensions within the energy sector. On that occasion the Indian company Welspun undercut them by 40 percent.

This new reverse comes in the midst of a context of friction between the government and business sectors linked to the group headed by Paolo Rocca after recent controversies over the contracts and imports for energy projects.

Meanwhile, the Oilfield Production Services (OPS) company was selected for the compression plant (46,000 horsepower) necessary for the system to function after emerging as the most competitive bidder against three other companies including Víctor Contreras.

Techint has thus been relegated to non-player in one of the most important energy projects linked to the future exports of Vaca Muerta, a project considered strategic for its capacity in the transport and marketing of Argentine gas to international markets.

– TIMES/NA/PERFIL