(Reuters) — Argentina inaugurated a major $1.4 billion pipeline on Friday that is set to pump oil from the western Neuquen basin to the Atlantic Ocean, a project that is expected to bring in billions of dollars in exports for the South American nation and expand capacity.

Argentina's Neuquen basin is home to Vaca Muerta, a Belgium-sized formation estimated to hold the world's second-largest non-conventional gas reserve and fourth largest for oil.

The 525-km (326-mile) pipeline, which crosses three provinces, is set to boost Argentina's transport capacity to 540,000 barrels of oil per day, more than doubling the current capacity of 225,000 bpd.

Oleoductos del Valle, known as Oldelval, the company managing the pipeline, said 100% of the project would be destined for export, granting "predictability to the producing companies."

The pipeline, which runs between the town of Allen and the port of Puerto Rosales in Buenos Aires province, is set to help export some 300,000 bpd. Oldelval said this should bring Argentina $8 billion per year.