GAS DEVT-YPF

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The Gas Utilization and Technical Assistance Project is part of the YPF's 1985-89 investment program for increasing the production of gas and associated liquids and expanding the use of gas. The loan will finance the expansion of liquid recovery facilities, compression and other units to optimize gas production; two pipelines for crude and petroleum products transportation; enhanced oil recovery pilot projects; equipment for compressed natural gas (CNG) vehicle refilling stations; and consultants' services for technical assistance to YPF. US$2 million of the loan proceeds will be transferred to the Energy Secretariat of the Works Ministry for technical assistance to improve energy planning. The project will help (a) substitute natural gas for petroleum products; (b) reduce gas wastage; (c) increase oil production from declining reservoirs; (d) eliminate bottlenecks in the transport system for liquids; (e) improve the basis for potential natural gas exports; and (f) strengthen YPF's finances and improve its financial management and control.