Chinese debt financing worth 350 million USD for gas pipeline project in Córdoba, Argentina

Chinese debt financing worth 350 million USD for gas pipeline project in Córdoba, Argentina In February 2016, Authorities from Argentina's Córdoba province and representatives of China Petroleum Pipeline Bureau (CPP) signed a contract to begin work on a natural gas pipeline project.

CPP and Argentine firm Electroingeniería form one of three groups that will build the 2,336km, 8.64bn-peso (US$562mn) pipeline.

Subsequently, it was reported by CPP itself that, in 2017, the joint venture formed by CPP and Argentina’s ELING Co., Ltd. won the bid for the first phase and the second phase of the comprehensive project. On May 24, 2018, the northern line of the first phase of the integrated gas pipeline project was put into operation.

The project has a total length of 2,943 km. Upon completion, it will provide gas services to 800,000 residents in 228 districts of Cordoba.

It was reported earlier in 2016 that an investment contract was reached between China and Argentina through which China is to finance the project at US$350 million.

However, according to Argentine media report in April 2017, Chinese financing fell through, after negotiations with the Chinese banks were terminated and the financing dropped due to impositions of contracts that were not accepted by the Government.