The consortium made up of Pumpco, Bonatti, and Contreras Hermanos submitted the lowest economic offer in an electronic reverse auction and secured the construction of a 527-kilometer gas pipeline for the Argentina LNG project, leaving the Techint-Sacde union out
The mechanism that allowed for this fiscal savings and operational efficiency was the electronic reverse auction. This unprecedented digital system eliminated any type of favoritism based on "previous track record" or "historical relationships", forcing competitors to bid down in a "blind auction."
"The process focused exclusively on the economic variable", which allowed for obtaining "the most competitive amount" possible for the country's development, challenging the inflexible cost structures of traditional local companies.
In a decisive turn that marks the end of an era of predictable awards and inflated costs, the Argentina of Javier Milei, which embraces global competition, has achieved its greatest victory. Under a scheme of absolute transparency, the consortium made up of the American Pumpco, the Italian Bonatti, and the local Contreras Hermanos has been awarded the construction of the longest gas pipeline in Argentine history, a monumental project valued at 1.2 billion dollars.
This project, which will connect the heart of Vaca Muerta (from the Meseta Buena Esperanza) to the export port of Sierra Grande in Río Negro, is the cornerstone of the ambitious Liquefied Natural Gas (LNG) export plan led by YPF, along with international giants ENI and XRG (the investment arm of the Emirati Adnoc).
Paolo Rocca, president of the unprofitable Techint.
The work consists of two parallel ducts extending over 527 kilometers: a record gas pipeline of 48 inches in diameter —the largest ever built on national soil— and a pipeline of 24 inches.
The big loser in this process has been the once untouchable Techint-Sacde partnership, led by Paolo Rocca and Marcelo Mindlin. Despite its historically dominant position, the local corporation suffered its second consecutive defeat in key tenders for Vaca Muerta, falling out of the game by an overwhelming margin of 15% in the offered price.
According to industry sources, international competition "has been good for Argentina", as it forced a drastic reduction in costs that traditional suppliers, accustomed to other schemes, could not or did not want to match.
Techint
The leadership of the winning consortium rests with globally successful figures who trust in the new direction of the country. Jorge Mas, the influential Cuban-American businessman and owner of Inter Miami, heads Pumpco through its parent company MasTec, a construction giant in the United States with annual revenues of 14.3 billion dollars.
After three previous attempts, Mas's company finally managed to penetrate the Argentine market, demonstrating that, with clear rules and without corporate protectionism, international capital is ready to invest.
For its part, the Italian Bonatti provides the cutting-edge engineering necessary for a project of this magnitude. While the final investment decision (FID) is expected by late 2026 or early 2027, the schedule is progressing steadily: the signing of the definitive contract is anticipated within the next 20 to 30 days.
This tender not only represents an unprecedented engineering feat with its 527 kilometers of extension; it fundamentally represents the consolidation of a model where Techint can no longer impose its conditions. The freedom to compete has transformed Vaca Muerta into an export hub with its sights set on Europe and Asia, demonstrating that when the State does not intervene to protect "friends," the only winner is the Argentine people who gain access to cheaper and more efficient works.
