Development Bank of Latin America approves US$840 million loan for Argentina

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The Government of Argentina agreed on a credit with the Development Bank of Latin America (CAF) for US$840 million destined to finance the “President Néstor Kirchner” gas pipeline.

This project aims to expand the production and transportation of gas and unconventional hydrocarbons from the Vaca Muerta formation located in the southwest of the country, informed yesterday, Tuesday, the Ministry of Economy.

The disbursement was agreed upon during a meeting between the Argentine Minister of Economy, Sergio Massa, and the board of directors of CAF, including its president, Sergio Díaz Granados, in the Chilean capital, Santiago.

President Néstor Kirchner gas pipeline. (Photo internet reproduction)
President Néstor Kirchner gas pipeline. (Photo internet reproduction)

Of the financing, some US$540 million will be used for the project “Reversion of the Northern Gas Pipeline – Complementary works to the President Néstor Kirchner Gas Pipeline, which will bring gas to northern Argentina, guaranteeing the supply of gas to homes and industries”, the economic portfolio indicated in a communiqué.

Another US$300 million will be used to finance a program for people with disabilities, to be disbursed immediately.

“Argentina is carrying out, within the framework of the development of a transition energy matrix, a vital work that allows us to take advantage of the second world reserve of shale gas as a resource, not only for the Argentines, but we aspire to transform it into an instrument to strengthen our energy matrix for Chile, Bolivia, Brazil and Uruguay”, said Massa.

The Minister added that “instruments such as the CAF that allow us to finance works such as these for 15 years allow Chile, Argentina, Bolivia, Brazil, and Uruguay to access one of the products, one of the world’s largest gas reserves, to have economic transition energy for the development of our industries”.

The Ministry of Economy pointed out that, due to its multilateral nature, the “President Néstor Kirchner” gas pipeline is of particular interest to the CAF because it will be able to reverse the import functions of the Bolivian gas pipeline and consolidate exports to neighboring countries.

According to the multilateral organization, “the works will allow transporting natural gas from the Neuquina Basin to the provinces of central and northern Argentina, and in the future, exporting the surplus to Chile, Bolivia and Brazil”.

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