– Do you consider the increase of hydrocarbons production to be within forecasted expectations? What are the projections for the short and medium term?
Production, especially the oil one, has gone beyond our expectations. The province of Neuquén has been breaking records due to the huge potential of Vaca Muerta. When in the middle of last year I said that we were going to end 2021 with an average production of 235,000 barrels per day, some people told me I was exaggerating. There were even doubts in the sector about reaching that figure; but we have surpassed it.
And the projections move ahead along these lines: at the moment we are producing about 270,000 barrels of oil per day and we expect to surpass the historical record, which is 308,000 barrels per day before the end of the year.
Gas production is also showing remarkable progress, though at a different rate. Nowadays, Neuquén produces more than 45 % of the country’s oil and more than 60 per cent of its gas.
– The reactivation of the Trans-Andean Oil Pipeline is going to be carried out (OTASA). Is there any scheduled date?
As this pipeline has been inactive since 2006, different tests have to be carried out before putting this into operation. Testing involves, basically, transporting water to check its reliability. The aim is to be able to ship more than 50,000 barrels to Chile before the end of the year. We periodically meet company authorities to speed up times.
– Has the production growth resulted in a greater number of companies supplying products and services in Neuquén? Have they been granted facilities and benefits?
The value chain of the hydrocarbons sector is very large and impacts in different ways. The main impact when production grows is just the establishment of more companies, especially SMEs that provide a variety of products and services, ranging from the most technical ones directly related to the activity to other random activities like provision of food, transport, clothing and recreation. The growth has been so remarkable that we are constantly working on the expansion of existing industrial parks and also the creation of new spaces with all services included . At the same time, this makes us ensure that these companies be connected to the production centres like Añelo, Cutral-Co, Plaza Huincul or Rincón de los Sauces. That is the reason for our constant work to improve road connectivity. We are in full execution of Route 67 to connect the city of Neuquén with Añelo in a fast way and in this way to ease congestion of Route 7 too.
A new route that corresponds to the hydrocarbon corridor is also underway. It includes the linking of routes 7 and 17 with Añelo before the entrance to the town leading up to the plateau, up to the route that goes to Rincón de los Sauces. The aim of it is to separate the urban circulation from the heavy traffic of the oil activity.
As for the benefits, I have repeated tirelessly that the sector needs clear rules to be able to project its investments. We are doing this in Neuquén, where we have committed ourselves not to increase the tax burden as far as we are concerned.
– We know about various projects and developments ahead related to renewable energies, but do you have any about the production of green hydrogen?
The province aims to reactivate the production of heavy water and, at the same time, to develop other productions in the PIAP. We have found an echo in CNEA authorities so as to start working on the possibility of having a multi-purpose industrial plant to produce heavy water and generate the development of green and blue hydrogen, apart from the development of fertilizers. To make it possible, it is necessary to have a differential and subsidized gas price to articulate the development, which also requires investments to adapt the plant. PIAP has an ammonia synthesis unit of 4,000 tons per day which can be partially used to produce ammonia and whose aim is the production of fertilizers or other products like hydrogen. The PIAP could produce green or blue hydrogen whether it is taken from the water of Lake Arroyito or from natural gas respectively, as well as ammonia, also green or blue, for the same reasons.
We have just awarded two new unconventional hydrocarbon areas, bringing the total to 45.
Part of the income that the province will receive from the Corporate Social Responsibility will be used to develop the project of PIAP reconversion, which is worth approximately 250,000 dollars.
-There is a project for the relocation of YPF to a hydrocarbon-producing province. Do you think that Neuquén could be a suitable destination? How would it impact the area?
It would be an act of strict justice for YPF’s headquarters to be located in the province of Neuquén as we are the largest producer both of gas and oil in the country. Vaca Muerta formation is located in this province and it is the one responsible for having reversed the decline of the production after many years and for this growth path which has become fundamental for the country
– Any other considerations that you think convenient to carry out?
Nowadays, apart from going on with this growth rate of production, it is essential to move forward in the necessary infrastructure to transport this production. Otherwise, we will soon have to face bottlenecks that will prevent us from taking advantage of this situation. We have repeatedly requested with due anticipation that Oldeval’s concession for the pipeline to Bahia Blanca be renewed so that it can project the investments that will allow the increase of the transportation flow. As for the gas, a step has already been taken forward through the corresponding tenders for the first stage of Néstor Kirchner gas pipeline, which will go from Tratayén to Salliqueló, in the province of Buenos Aires.
I always say that when it comes to gas, no market should be missed. At present, 50 per cent of Argentina’s households lack gas supply and that is why we need gas pipelines. The same happens in the regional market, where Chile and Brazil are demanding the fluid.
Besides, as for overseas destinations, a liquefaction plant must be planned for transport by ship. There is still a lot to be done but we have to address it quickly. On the one hand, because it means stopping energy import and consequently, helping to bring in foreign currency for the Central Bank’s coffers . But on the other hand, if we think about a medium term because we are in the middle of a transition stage in the whole world, it would also mean migrating towards renewable and clean energy sources.
Therefore, in the next 30 or 40 years we have to take advantage of all the wealth we have in the subsoil.
