Argentina began exporting unconventional natural gas to Chile on Tuesday (30.10.2018) after 12 years of suspension, in a sign that aims to achieve greater integration of the energy matrices of both countries, said Chilean President Sebastián Piñera.
At an event on the outskirts of Santiago, the official import of natural gas was restarted, mainly from the Argentine province of Neuquén, especially from the Vaca Muerta deposit, which will be used to supply fuel to customers in central Chile.
"After 12 years, today we have managed to open the gas valve again," said Piñera. "This will allow us to replace other fuels that are more expensive and polluting, such as oil and, to a certain extent, coal."
According to local media, the import contracts were made at a value between US$4,2 and US$4,3 per million BTU, which would imply that Argentine gas would compete with the coal-fired thermoelectric plants operating in Chilean territory.
Very pleased with the resumption of imports of Argentine natural gas for electricity generation with the President @sebastianpinera and the Secretary of Energy of Argentina @javierjiguacel. It has important energy and environmental benefits for our country. pic.twitter.com/arcNFwmedU
— Susana Jimenez (@susanajimenezs) 30th October 2018
Chile without gas reserves
Chile, which has almost no gas reserves, had to develop multimillion-dollar investments in recent years to build ports and storage facilities to import liquefied natural gas (LNG) in the north and center of the country, after Argentina cut off shipments more than a decade ago.
That country signed an agreement in June to export LNG to Argentina for the next three years., which will allow a maximum daily shipment of 3 million cubic metres during the southern winter.
The shipment of Argentine natural gas to Chile materialized after both countries signed an agreement agreement on energy integration which will allow in the short term free marketing, import, export and transportation of natural gas and electricity.
"We are working very hard with President (Mauricio) Macri on a general energy integration," Piñera said.
The president stressed that both nations have parallel energy systems, with levels of consumption and demand at certain times of the year that do not double, which would allow both matrices to be complemented "naturally".
"We can therefore take advantage of the fact that when there is excess demand in Argentina we will export energy and when the opposite occurs we will be able to import energy (…) This will allow one to serve as a backup for the other and will prevent us from having excess investment," said Piñera.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
