Argentina rises on the global tanker map as shale exports surge
Argentina's Oil Exports Surge Amid Infrastructure Boom
Argentina is rapidly emerging as a key player in the global crude oil shipping market, driven by a surge in shale production and significant infrastructure developments. The country’s Vaca Muerta shale formation has reached a production level of 450,000 barrels per day, with projections indicating it could exceed 1 million barrels daily by 2030. This growth has transformed Argentina into a net crude exporter, reshaping regional tanker routes and increasing demand for larger vessels.
Infrastructure Developments Fuel Export Growth
The remarkable increase in Argentina’s oil export capacity is largely attributed to several major pipeline and terminal projects. The reactivation of the Trasandino pipeline in 2023 has enabled the transportation of Vaca Muerta crude across the Andes to Chile. Additionally, the expansion of the Oldelval pipeline to Puerto Rosales has raised its capacity from 550,000 barrels per day to 750,000 barrels per day, facilitating greater export volumes from Argentina’s Atlantic coast.
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Earlier this month, the first suezmax cargo was successfully loaded at Puerto Rosales, marking a significant transition from aframax to suezmax tankers. Currently, aframax vessels account for nearly half of Argentina’s crude exports, averaging 170,000 barrels per day in 2025. However, analysts anticipate that the share of suezmax tankers will increase in the latter half of the year, reflecting the evolving dynamics of the export market.
Looking ahead, the construction of the Vaca Muerta Sur pipeline is set to be a game-changer. This 600 km pipeline, with a capacity of 550,000 barrels per day, will connect the shale basin directly to a new deepwater port at Punta Colorada, scheduled to open in late 2026. The terminal will feature two single-point moorings capable of accommodating Very Large Crude Carriers (VLCCs), with 280,000 barrels per day of capacity already reserved by major producers such as YPF, Chevron, and Shell.
Challenges and Future Prospects
Once operational, the new pipeline and port facilities are expected to double Argentina’s oil export capacity to 930,000 barrels per day, with the potential to reach 1.5 million barrels per day by 2030. This expansion is anticipated to usher in a new era of VLCC loadings for long-haul shipments, particularly to emerging markets in Asia. Historically, Argentina’s crude exports have primarily served short-haul destinations on the US west coast, including Long Beach and Honolulu. However, the introduction of suezmax and VLCC capabilities is likely to open up longer-haul routes, increasing tonne-mile demand.
Despite these promising developments, analysts caution that challenges remain. The Atlantic Basin is currently experiencing an oversupply of light sweet crude, which could complicate the regional placement of Argentinian oil. Nevertheless, the rising demand in Asia presents a viable outlet for Argentina’s growing crude supply, suggesting a bright future for the country’s oil export ambitions.
