Argentina's gas shortage from Vaca Muerta forces industry cuts amid infrastructure delays

Argentina is experiencing a winter gas shortage as incomplete pipeline projects, notably the Perito Moreno expansion, limit the evacuation of Vaca Muerta production. To meet peak residential demand, the government has resorted to importing liquefied natural gas (LNG) at prices spiked by the Middle‑East war, raising costs for factories. The industrial sector reports a 27 million m³ daily consumption, below its usual 35 million m³, and the Argentine Industrial Union says up to half of firms may cut activity, with Salta factories expecting a 35 % drop in gas allocation.

A separate study by the Latin American Energy Organization (OLACDE) projects that Vaca Muerta, together with Brazil’s expanding offshore output, could underpin a South‑American gas market worth USD 4‑5 billion a year. Realising this potential would require roughly USD 18 billion in new transport infrastructure and harmonised regulations across the region.