One year after acquiring the sand plant in Diamante, Entre Ríos, Tecpetrol has already reduced the costs associated with this input and reached record production levels.

In May 2024, Tecpetrol took a strategic decision to begin processing river sand in-house with a view to supplying part of its unconventional fracturing operations. Moving from external suppliers to operating our own plant meant stepping up to the challenge of running an activity we knew very little about. It wasn’t an easy process, but the results speak for themselves. Today, the company has access to high-quality input at a significantly lower cost than market prices, and plans are already underway to expand capacity.

Tecpetrol’s need for sand dates back to 2017, with the development of Fortín de Piedra, where sand is a key input for the hydraulic stimulation of unconventional wells. One of the main suppliers at the time was Arenas Argentinas del Paraná, which operated a plant in Diamante, Entre Ríos. After several years of a solid working relationship, the company approached Tecpetrol in 2024 with an unexpected proposal: they wanted to sell us the plant.

“They offered us a very reasonable economic proposal to acquire the facility,” explains Sergio Desclazo, Logistics and Warehouse Regional Senior Director. “At that point, sand had already become a strategic asset for the industry, with demand growing not only for us but across the sector. We obviously didn’t want to buy it at an inflated price. We took on the challenge a year ago, and today I can say it was the right decision.”

When Tecpetrol took over the plant, estimated production capacity was around 15,000 tons per month. Just six months later, in July 2025, the operation reached record production levels of 21,613 tons.

Today, sand from the Diamante plant covers around 35% of Tecpetrol’s needs for unconventional operations in the Neuquén Basin. Producing this input in-house represents savings of approximately USD 400,000 per PAD, equivalent to three or four wells operating simultaneously.

Looking ahead, the expansion plan for the Entre Ríos plant aims to increase annual production from some 200,000 tons to 600,000. Reaching that amount would allow Tecpetrol to cover between 75% and 80% of its future sand requirements, significantly increasing the potential for cost reduction.

Difficulties and surprises

Lautaro Ramos, Logistics Planning Expert, recalls that one of the main challenges of acquiring the plant was stepping into “a completely different activity, in a province where the Techint Group didn’t yet have a presence. The sand industry has a very different mindset from oil and gas, so we had to learn how to connect with people from another sector, while still upholding the Group’s standards.”

Juan Gallo, Plant Manager, relocated from Neuquén to Entre Ríos to lead the project on site. From an operational standpoint, he says the experience exceeded expectations. “We thought we’d run into more issues, from understanding how the plant operated to dealing with equipment failures. But everything worked well, and production was consistently strong,” he explains. “When we arrived, there wasn’t the same safety, environmental, and health culture that we have. We worked hard to make this happen, and I’m proud to say that throughout 2025 the only incidents we had were minor and never escalated.”

Juan also highlights the support he received from across the company throughout the acquisition and operation of the plant. “One of the things I value most about working here is the human side,” he says. “I always felt supported and could turn to experts whenever I faced something new. Even though I’m based in Entre Ríos, it makes all the difference knowing there’s a team of professionals behind you who will never leave you on your own.”