Continued investment in Vaca Muerta has the potential to change Argentina’s gas landscape over the coming years.
The Neuquén Basin, which houses the Vaca Muerta shale play, is the most prospective gas basin in Argentina. Total gas output from the Neuquén and Cuyana basins accounted for 58% of Argentina’s total gross gas output in 2016, and the share is set to rise over the coming years. The government has confirmed investment of $6-8 billion in Vaca Muerta in 2017. Argentina expects to invest $12-15 billion in the acreage in 2018 followed by an average of $20 billion per year from 2019.