Argentina has secured a loan worth $840 million from the Development Bank of Latin America (CAF) to fund the construction of the "President Néstor Kirchner" gas pipeline.
According to South Atlantic News Agency, MercoPress, the announcement was made on Tuesday, March 7, after Argentine Economy Minister Sergio Massa met with the CAF board of directors, including Chairman Sergio Díaz Granados, in Santiago, Chile.
According to a statement from Argentine authorities, $540 million of the loan will be allocated for the "Reversion of the Northern Gas Pipeline - Complementary works to the President Néstor Kirchner Gas Pipeline," which will supply gas to northern Argentina, ensuring a stable gas supply for homes and industries. The remaining $300 million will be used to finance a program for people with disabilities, to be disbursed immediately.
During the meeting, Massa stated that Argentina is focused on developing a transition energy matrix and taking advantage of the world's second-largest shale gas reserve, adding that the project will strengthen Argentina's energy matrix while also benefiting Chile, Bolivia, Brazil, and Uruguay.
The loan will be repaid over a period of 15 years, providing access to one of the world's largest gas reserves for Argentina, Chile, Bolivia, Brazil, and Uruguay. The loan is part of Argentina's efforts to strengthen its economy and reduce its reliance on imports.
When completed, the "President Néstor Kirchner" gas pipeline will help Argentina become a gas exporter and reduce its reliance on gas imports from Bolivia.