The agreements will strengthen the security and stability of crude oil supplies to our country.
Enap and the companies YPF, Vista Energy, Shell Argentina, and Equinor today announced the signing of contracts for the supply of crude oil from Vaca Muerta, located in the trans-Andean province of Neuquén. It will be valid until June 2033.
The agreements, that will enable the supply of around 35% of the annual crude oil demand of Enap, include the transportation of this raw material through the Oleoducto Trasandino (pipeline), built in the 1990s and extending over 400 kilometers. After 17 years of inactivity, in 2023 this pipeline re-started oil shipments to ENAP's facilities in Hualpén, Región del Biobío, following an exhaustive rehabilitation process.
The contracts, signed after a negotiation process and operational testing that lasted more than two years, involve a projected value of nearly US$12 billion, making it the largest commercial agreement in Enap's history. As a reference, the total annual trade between Chile and Argentina is currently close to US$8 billion.
The subscription of these contracts provides greater security and stability to the supply of crude oil, strengthens the country's energy security, enhances the logistics chain on both sides of the mountain range, and reduces dependence on maritime transport that is regularly impacted by factors such as weather conditions or port congestion. In addition, it allows for the purchase of crude oil with a lower sulfur content, which is beneficial from an environmental point of view.
It also reinforces Enap's recently announced positioning with regard to its logistics business, as it will enable the export of crude oil from Vaca Muerta through the Terminal Marítimo San Vicente, located in Talcahuano, promoting this location as a new hub for the shipment of this product via the Pacific Ocean.
“This is a very significant milestone, consistent with the strategic definitions we have adopted which is in line with Enap's plan for 2040. The result of this agreement contributes to improving Enap's competitiveness and allows our country to have greater energy security, as we will be able to strengthen the production of fuels essential for industry, transportation, and people's daily lives," as stated by Enap's general manager, Julio Friedmann.
The manager highlighted that the transfer by means of a pipeline reduces the time required to transport the crude oil and the associated financial costs, as well as the fact that Enap keeps its international maritime import capacities fully operational strengthening its flexibility in the event of any contingencies that may arise in deliveries from Argentina.