“This project started from this year's increased production and export of natural gas to Argentina from the San Alberto field, Itaú, Chad and Margarita. Bolivia will have greater availability of NGLs. Therefore, we must create a new network with a transport capacity of over 25,000 bbl/d,” said YPFB Transporte General Manager Cristian Inchauste.

Mr Inchauste explained that the project Southern Expansion Liquid System mobilised NGLs for the domestic market from the Chaco Tarija to Rio Grande in Santa Cruz to connect with YPFB’s refineries. The product will integrate the departments of Tarija, Chuquisaca, Santa Cruz, and Cochabamba.

The engineering will be completed by mid-April 2011 after which the length of the pipeline network will be finalised. Currently approximately 200 km of 10–12 inch diameter pipeline has been proposed. Liquid-separations plants are being constructed in Rio Grande and Gran Chaco and will increase the production of LPG in Bolivia.

YPFB is considering two options for the increased LPG production: exporting to Argentina or constructing a propane pipeline to Sica Sica, Bolivia and on to Ilo, Peru, and Arica in northern Chile.