The Challenge of Expanding Our Supply Chain – Tecpetrol | 2026

One year after acquiring the sand plant in Diamante, Entre Ríos, Tecpetrol managed to reduce the costs associated with this essential input for hydraulic fracturing operations and achieve record production levels as part of a strategy aimed at strengthening its supply chain. In 2024, the company decided to move from relying exclusively on external suppliers to producing sand in-house after purchasing the Arenas Argentinas del Paraná facility, and six months after the acquisition increased estimated monthly production from 15,000 to 21,613 tonnes. Currently, the sand produced in Diamante covers around 35% of Tecpetrol’s requirements for unconventional fields in the Neuquén Basin and represents savings of approximately US$400,000 per PAD, while the company plans to expand production capacity from 200,000 to 600,000 tonnes annually in order to cover between 75% and 80% of its future needs. Additionally, the project involved operational and cultural challenges related to entering a different industry and developing operations in a province where the Techint Group previously had no presence, although the company highlighted the plant’s operational. Link to Article