Argentina gas exports dip as winter kicks in

Gas exports from Argentina fell month-on-month in May – as domestic demand kicked in – but were more than double the amount registered in the same month of 2022.

The country piped 6.57Mm3/d (million cubic meters per day), up from 3.10Mm3/d in May 2022, with the bulk – 5.80Mm3 – sent to Chilean capital Santiago via the GasAndes duct, which is nearing capacity. Chile also received 540,000m3/d via the Pacífico pipeline further south.

Producers piped 9.62Mm3/d in April.

Argentina has been boosting gas production and authorizing firm exports to Chile under natural gas incentives scheme Plan Gas. National gas production was around 130Mm3/d last quarter, up from about 127Mm3/d a year earlier, according to data from the federal energy department.

In May, Uruguay accounted for 230,000m3/d, with 220,000m3/d of this sent through the Cruz del Sur pipeline and the balance via the PetroUruguay link, according to data published by natural gas regulator Enargas.

Argentine gas exports have historically tended to trough in the Southern Cone winter months of May, June and July, when domestic demand climbs and previously only interruptible exports have been authorized.

Argentina is due to start commissioning this week the 570km first phase of the publicly owned Vaca Muerta natural gas pipeline. The duct will help ease a production bottleneck in the Neuquén basin – home to the Vaca Muerta unconventionals formation – and ease reliance on expensive imports.

Source: BN Americas

To read the original report, please visit: https://www.bnamericas.com/en/news/argentina-gas-exports-dip-as-winter-kicks-in

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