Particle.news
Download on the App Store

PAE Starts Vaca Muerta Gas Exports to Uruguay Through Cruz del Sur

Uruguay expects lower power costs by switching from pricier thermal fuels.

Overview

  • Pan American Energy began supplying Uruguayan power generation under a contract with state utility UTE via the revived Gasoducto Cruz del Sur.
  • More than 7 million cubic meters have already been delivered, with the company indicating volumes will rise during the summer demand peak.
  • The gas feeds the Punta del Tigre combined‑cycle plant, supporting thermal generation on Uruguay’s grid.
  • Officials say the imports replace costlier, higher‑emission fuels, with ministry estimates pointing to roughly 50% lower electricity production costs versus other thermal options.
  • The cross‑border pipeline is owned by a consortium including PAE, ANCAP, Harbour Energy and Shell, and PAE is advancing Southern Energy LNG exports targeted for 2027 while exploring a longer‑term southern link to Brazil.