Generic Hero BannerGeneric Hero Banner
Latest market news

Argentina proposes opening of LNG terminals

  • Märkte: Natural gas
  • 18.01.18

Argentina's government is calling for public input on draft regulations that would allow private-sector companies to import LNG through two terminals that are now exclusively used by state-owned Enarsa.

The proposed regulations would still give priority to Enarsa in the use of the terminals.

The energy ministry published the draft and called for "proposals, observations or modifications" to be submitted via email before 28 February.

"The regulation was established to facilitate the creation of a secondary market for (regasification) capacity," the ministry said. "These plants were structured with a closed management model that did not contemplate the possibility of third parties using a portion of the regasification capacity."

Argentina's two LNG receiving terminals are located in Bahia Blanca and Escobar, both in Buenos Aires province. The terminals were built after the country became a net gas importer in the late 2000s, following a decade-long role as a steady regional exporter.

The effort to allow the private sector to use the regasification terminals aligns with a broader campaign by the government to open up the highly regulated energy sector and allow power generators to purchase their own fuel.

In the peak of the southern hemisphere winter months, thermal power plants often have to burn more expensive diesel because the government prioritizes supply of natural gas for residential use, where the fuel is used for heating.

Over the last five years, Argentina imported 20pc-25pc of its natural gas consumption, and around 50pc-55pc of those imports came in the form of LNG, according to the energy ministry. The country also imports pipeline gas from Bolivia and recently started importing regasified LNG from Chile during periods of peak demand.

Enarsa last year scrapped preliminary plans to build a third LNG terminal, opting to pursue the expansion of capacity at one of its existing terminals instead.

The administration is also promoting unconventional gas exploration as a way to cut imports through a subsidy program.

Macri said in 2016 that his goal was to end LNG purchases within "five or six years" based on the country's rich unconventional gas potential.


Teilen
Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more