The Argentine official oil company YPF began this week to build an oil pipeline, linking South Patagonian cities of Anelo to Allen, in the provinces of Neuquen and Rio Negro, respectively.
With 130 km in length, the construction of the pipeline will require an estimated 150,000 mt of steel plates, with total investment costs estimated at $190 million.
According to YPF, the new pipeline will boost the output from the Vaca Muerta formation, which will eventually allow the country to export some 135 million barrels of oil per year.
Vaca Muerta is the world's second-largest shale gas reserve and fourth largest for shale oil.
A second stage of the pipeline is under evaluation and is expected to require investments around $2.0 billion, shared among YPF and other partner companies.