PAN American Energy prospects LNG exports

Argentinian petroleum company, Pan American Energy (PAE) is prospecting exports of liquefied natural gas (LNG) from Vaca Muerta shale play via Chile’s Quintero LNG terminal, using an existing 10m cubic meter per day capacity pipeline. The project is expected to cost US$300m. Meanwhile, the country’s state-run oil company, YPF, announced plans to install a floating liquefaction unit in Bahia Blanca to export up to 2.5 Mmcm/d of LNG from next year. The South American country’s gas production rose 14% to 130m cubic meter per day in 2018, compared to 2014. The country’s Energy Secretariat believes Argentina’s gas production will reach 238m cubic meters per day over the next five years.

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URL: https://www.kallanishenergy.com/2018/11/16/argentinas-pae-mull-lng-exports-via-chile/

Argentina’s PAE mulls LNG exports via Chile

Argentina’s oil and gas firm Pan American Energy (PAE) is exploring the prospects of exporting Vaca Muerta’s shale gas as liquefied natural gas (LNG) via Chile.The joint venture between BP and Bridas is in the conceptual design stage of potential LNG exports project using Chile’s Quintero LNG terminal, PAE’s vice president of reserves development, Alejandro Angriman told reporters.Speaking on the sidelines of an event in Argentina, Angriman said the onshore importing terminal “could be converted so it can liquefy to export.” Shale gas from Vaca Muerta could be exported to Chile via a 10-million-cubic-meter-per-day (Mmcm/d) pipeline, after some adjustments were made in the infrastructure.The potential project is estimated at a cost of $300 million, and could export some 25 Mmcm/d of LNG from its first train, Kallanish Energy understands.Argentina has recently resumed its natural gas exports to Chile thanks to a domestic production growth, particularly in the Vaca Muerta Shale play. PAE has been granted an export permit and should be delivering gas to Chile between December and February, the summer season.With operations on and offshore, PAE contributes to 18% of the Argentine hydrocarbons production, consolidating itself as the leading oil and gas producer in the country’s private sector.Earlier this week, state-run oil company YPF announced plans to install a floating liquefaction barge in Bahia Blanc to export up to 2.5 Mmcm/d of LNG from next year. The idea would be to build a larger facility at a later date.Argentina plans to double its oil and gas production by 2023, with the latter expected to increase to 238 Mmcm/d. Such growth would enable the country to boost exports to 100 Mmcm/d, in the period, compared to less than 1 Mmcm/d this year.To achieve said goal, the government has started the second-round of a Vaca Muerta roadshow in the U.S. in order to promote investment opportunities.

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