Argentina began filling its new natural gas pipeline on Tuesday, marking a major infrastructure feat and a political victory that will save the country billions from energy imports amid a severe dollar shortage.
Government officials and corporate leaders celebrated the filling of the pipeline, which will take about 20 days to complete. Named after former president Néstor Kirchner, the pipeline stretches 356 miles (573 kilometers) from the remote Patagonia region to Argentina’s cities and industrial centers in the east. It was developed by the state-owned Energia Argentina SA.
Economy Minister Sergio Massa, who oversaw the final months of the project and is considered a potential presidential candidate in this year’s election, hailed the opening as a major savings opportunity. His ministry predicts the pipeline will save Argentina $1.7 billion from gas imports this year and another $4 billion next year.
It also marks a victory for Massa and other Peronist politicians who face a tough re-election bid this year against the backdrop of Argentina’s economic crisis. Annual inflation is now over 114%, the economy is expected to slip into recession this year and an acute shortage of US dollars at the central bank is fueling fears of a devaluation of the peso.
Massa dealt a blow to the previous opposition-led government during a victory lap on Tuesday.
“We made the impossible possible,” Massa wrote on Twitter. “This project was planned in 2015. It was stalled for years due to a lack of strategic vision and courage.”
–With help from Jonathan Gilbert.
