Bonatti signs new contract with Pumpco in Argentina

The general contractor Bonatti has officially entered the Argentine market, having already established a significant presence in Mexico and Chile. The group has been awarded, in a joint venture with the US firm Pumpco, an EPC (engineering, procurement and construction) contract for the construction of the entire pipeline system for the Argentina LNG project, through which the South American government aims to exploit the massive Vaca Muerta offshore gas field and which, by 2030, is expected to provide an LNG (liquefied natural gas) export capacity of up to 12 million metric tonnes per annum (Mtpa), with the potential to increase this to 18 Mtpa.

The scope of the works under the Argentina LNG project – involving Eni, Argentina’s YPF and the UAE-based XRG – includes the construction of a 48-inch pipeline for the transport of natural gas and a parallel pipeline for the transport of liquids. Both will be approximately 527 kilometres long and will link Meseta Buena Esperanza, in the Vaca Muerta basin, to Sierra Grande, in the province of Río Negro, on Argentina’s Atlantic coast.

Under the contract, which is worth a total of 1.2 billion dollars, the Italian share amounts to 480 million (approximately 421 million euros at current exchange rates). The US group Pumpco, which specialises in the pipeline sector, will contribute its solid expertise in the construction of large-diameter infrastructure. Meanwhile, the Argentine company Contreras Hermanos, which is part of the joint venture, will contribute its local expertise and significant operational capabilities in the construction of energy infrastructure.

With this contract award, Bonatti is, as mentioned, gaining a foothold in the Argentine market and further consolidating its presence in Latin America. The group already has a very significant presence in the region, where it operates in both the energy and mining sectors. To date, the company has constructed over 3,500 kilometres of large-diameter pipelines, generating total revenues in excess of 4 billion dollars and employing more than 6,500 professionals.

Argentina therefore represents a new milestone in the company’s growth in Latin America, where it first established a presence in 2012, starting with Mexico – now one of the group’s main international operational hubs and the key platform for the development of its activities on the continent. In Mexico, Bonatti has contributed to the construction of strategic infrastructure for the energy sector, including over 3,000 kilometres of pipelines, 9 compressor stations and 3 storage terminals for refined products, as well as a major project at the ECA LNG plant in Ensenada, Baja California, which was recently completed and involved mainly mechanical, electrical and instrumentation works.