The Megaproject Connecting Vaca Muerta to the World
VMOS redefines Argentina’s Export Future Former factory.
The Vaca Muerta Oil Sur (VMOS) project is progressing at a steady pace and is already shaping up to be one of the most significant energy projects in Argentina in recent decades. Conceived as a structural solution for the transportation and export of crude oil, the project aims to transform Vaca Muerta’s potential into a large-scale export platform.
The origin of VMOS is directly linked to the exponential growth of unconventional production in the Neuquén Basin. Faced with limitations in evacuation capacity, the need arose for infra–structure capable of transporting larger volumes of crude oil to export ports.
Thus was born the 437-kilometer pipeline that will connect the fields to the maritime terminal in Punta Colorada, on the San Matias Gulf. The project is being driven by a consortium led by YPF, alongside companies such as Vista, Pan American Energy, Chevron, Shell, Pluspetrol, Tecpetrol and Pampa Energía.
Concrete Progress: From Planning to Execution
Since its inception, the VMOS has shown steady progress. Currently, construction is over 58% complete, with active work sites along the entire route: from the starting point in Allen to the coast of Río Negro.
One of the most recent milestones was the underground crossing of the Negro river, a highly complex engineering project carried out using horizontal directional drilling.
This 800-meter-long section, located 26 meters below the surface, allowed the pipeline to cross the riverbed without impacting the surface, in compliance with strict environmental standards.
Meanwhile, work is progressing on the pumping stations and the storage terminal, where progress is already visible in the welding and metal structures.
World-Class Infrastructure
The heart of the system will be the export terminal at Punta Colorada. There, tanks of extraordinary dimensions are being built: 82 meters in diameter, 35 meters high and with a capacity of 120,000 cubic meters of crude oil each.
Each unit involves:
- 1,500 tons of steel.
- Over one million inches of welding.
- 30,000 bolts in its aluminium geodesic roof.
These structures stand out not only for their scale but also for their design, engineered to withstand demanding maritime conditions and ensure operational safety.
In addition, the terminal witll feature two mooring buoys located several kilometres offshore, enabling the operation of very large carriers (VLCC) something unprecedented in the country.
Historic Financing and International Support
In July 2025, the project reached another key milestone: the closing of a US$2 billion financing deal, considered the largest private infrastructure loan in Argentina in the last 30 years. The transaction was led by institutions such as City, Deutsche Bank, Itaú, JP Morgan and Santander, alongside a group of international investors.
Timeline: Towards 2026-2027
The plan calls for the VMOS to be operational by December 2026, while the entire system is expected to reach full capacity in 2027.
Once operational, the pipeline will be able to transport more than 550,000 barrels per day, increasing the basin’s evacuation capacity by 70% and doubling current transport volumes in the core area.
Economic Impact: A New Export Era
The ultimate goal is clear: to make Argentina a reliable supplier of unconventional oil. With the VMOS in operation, the country could generate exports of up to US$15 billion annually by 2030, a figure comparable to half of the agricultural export sector.
In addition to foreign exchange earnings, the project will drive:
- Direct and indirect employment.
- Development of local suppliers
- Integration of the energy value chain
- A project that redefines the energy map.
More than just a pipeline, the VMOS represents a structural shift. From extraction in Vaca Muerta to loading onto ships in the Atlantic, the system integrates production, transportation and export into a single efficient network.
As the promoters say, this is a project that marks a turning point: the infrastructure necessary for Argentina to move beyond being a producer with logistical limitations to competing in major global energy markets.
If deadlines are met, the VMOS will not only connect regions, it will connect the country with a historic opportunity.