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Argentina authorizes “continuous” delivery of natural gas to Chile, after 13 years of cuts

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The Government has authorized the resumption of "firm" or non-interruptible exports of natural gas to Chile, with a volume of up to 10 million cubic meters per day, the Energy Secretariat reported on Wednesday.

The decision, announced in the provision 167/2019 of the Official Gazette, derives from the action signed last July by the presidents of Argentina, Mauricio Macri, and Chile, Sebastián Piñera, and which followed the reactivation of gas exports, with interruptible supply, in September 2018.

«The maximum export volume under this modality will be 10 million cubic meters per day and permits will be granted for the period between September 15, 2019 and May 15, 2020., says the Secretariat's text.

Argentina had suspended gas supplies to the neighbouring country in 2007 due to the energy crisis that led to a domestic supply deficit. 
 
Currently, the growth of gas production in the Vaca Muerta region, in the province of Neuquén, has led to an increase in exports that totaled an average of 5,9 million cubic meters per day in the first half of the year to destinations such as Chile, Brazil and Uruguay, the entity highlighted. 
 
In April 2018, both countries signed an agreement for the commercialization of gas, which allowed exports to resume in September under the interruptible modality after being suspended more than a decade ago.
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