Pan American Energy (PAE) is advancing a strategy centred on expanding gas production in Argentina’s Vaca Muerta formation and developing liquefied natural gas (LNG) exports, aiming to strengthen its regional presence and support energy integration across South America, a company executive said.
The approach combines upstream investment in unconventional oil and gas with the development of new export routes, including LNG shipments and potential pipeline connections to neighbouring markets such as Brazil.
“Today, in Latin America, our main focus is on developing gas and oil in the Neuquén basin, in the Vaca Muerta formation, which is one of the main unconventional resources in the world,” said Alejandro Catalano, PAE’s managing director in Brazil. “The goal is to increase production to meet Argentine domestic demand and also advance the monetisation of these resources through regional and global exports,” he added.
The company is progressing an LNG export project that spans the full value chain, from upstream production to liquefaction and transport. The initiative began with the contracting of a vessel with a capacity of 2.4mn tonnes per year, followed by a second unit that will expand total capacity to around 6mn tonnes annually.
A dedicated gas pipeline is also planned to supply the project, which is being developed by a consortium comprising PAE, YPF, Harbour Energy, Pampa Energía and Golar. The first LNG exports are scheduled to begin in 2027.
Catalano said commercial agreements are already in place for most of the initial capacity. “Of the 2.4 million tons per year, about 2 million were contracted by a European company, SEFE (Securing Energy for Europe), which is a German company,” he said.
Beyond LNG, the company is exploring regional pipeline exports, particularly to Brazil. “Brazil is a natural market, without a doubt. But LNG makes it possible to export to the whole world,” Catalano said.
He noted that existing infrastructure linking Argentina, Bolivia and Brazil could be used to expand pipeline exports, although additional investments and coordination across jurisdictions would be required. Another potential route involves connections through southern Brazil, though this would require construction of a roughly 600km pipeline between Uruguaiana and Porto Alegre.
“The challenge is that there is no additional connection within Brazil,” Catalano said, adding that such a project would require significant investment and around 18 months to complete, as well as committed financing.
In Brazil, PAE is also developing renewable energy assets, including the Novo Horizonte wind farm with an installed capacity of 473MW, which began full commercial operations in 2024. The company is considering adding a 400MW solar component to the project, though Catalano said current market conditions have delayed that plan.
“Today there is an excess supply of energy during the day in Brazil, which makes it less attractive to develop new solar projects at this time,” he said.
Catalano emphasised that regulatory certainty is key to unlocking investment in large-scale energy infrastructure. “In Argentina, for example, initiatives such as RIGI – a regulatory framework created to promote large-scale investments – are essential to drive these projects and provide long-term visibility to investors,” he said.
He added that South America is entering a period of opportunity driven by rising production and integration initiatives. “Natural gas and LNG play a fundamental role in this transition,” Catalano said. “While we advance in the development of renewable energies, gas serves as a bridge between the current system and the future, as it is a fossil fuel with lower CO2 emissions.”
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