Argentina Approves $700M Offshore Gas Production Project

The so-called Proyecto Fénix, operated by Total Energies with the participation of Wintershall Dea and PAE, is expected to begin production in early 2025

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Buenos Aires — Argentina’s ministry for sustainable development, innovation and combating climate change approved on Wednesday the installation of an offshore gas production platform and the drilling of three wells of the Fénix Project in the Southern Marine Basin.

This gives the green light to a $700 million investment by the consortium formed by Total Energies (37.5% - operator), Wintershall Dea (37.5%) and PAE (25%).

The Environment Ministry has approved the environmental impact studies after a public hearing in which the scope of the project, which is expected to start production in early 2025, with a maximum production of some 10 million cubic meters of gas per day, was discussed.

The gas produced by the platform, located 60km off the coast of Tierra del Fuego, will be transported through pipelines to treatment plants on the coast of Tierra del Fuego and Santa Cruz province, according to energy specialist Juan José Carbajales.

“From the Argentine sea and the southern basin, gas will be produced that reaches Buenos Aires,” he said.

In the aforementioned hearings, Daniel Gerold of G&G Consulting, said that the project is of major importance because it will re-establish the supply in the San Martín gas pipeline, which is currently at a very low level, and where it is indispensable that a greater gas volume is developed.