Arid Argentina prioritizes fuel cargo on stricken river

Drought-stricken Argentina declared a six-month emergency for the Parana river where record-low water levels have thwarted grains shipments from Rosario port.

The drought is also reducing hydroelectric power generation in Argentina, a trend mirrored in neighboring Brazil and Chile.

The strategic Parana river transports more than 80pc of Argentina's grains exports.

In the emergency decree published today, the government said the crisis is the worst in 77 years.

The low water levels partly reflect a lack of rain over the past two years, particularly in Brazil, where the Parana river originates. Some vessels have been forced to depart Rosario with only partial cargoes to stay afloat.

The decree authorizes the energy secretariat to "adopt the necessary measures" in order to ensure power supply, including authorizing more fuel imports for thermoelectric plants.

The measure also says fuel cargoes should be given priority over other shipments if there is congestion in the waterway produced by the shallow conditions.

The state of emergency takes effect tomorrow and applies to the provinces of Formosa, Chaco, Corrientes, Santa Fe, Entre Rios, Misiones and Buenos Aires, where residents have been asked to reduce water consumption.

The decree mandates tax relief for those affected by the drought and calls on state-owned Banco de la Nacion Argentina for financial support.

The drought is particularly impacting the binational 3.2GW Yacyreta dam that Argentina shares with Paraguay. In June, Yacyreta supplied 641GWh to the national grid, a 38pc decline from June of last year, according to data from state-owned electricity wholesaler Cammesa.

The water flow in Parana last month was 6,190m3/second, a 26pc decline on the year and almost half of the 11,823m3/sec recorded in June 2019, according to Cammesa.

The drought that the Parana river is experiencing "is an extreme event that originates in climate change and is accentuated by the deforestation in the basin and the decrease of the wetlands," environment secretary Sergio Federovisky said.

By Daniel Politi