The Government declared that national public interest and as a priority objective the promotion of natural gas production, through the Decree 892 / 2020 published this Monday (16.11.2020) in the Official Gazette.
The standard establishes the Launch of the Plan for the Promotion of Argentine Natural Gas Production–Supply and Demand Scheme 2020-2024, based on a competitive system at the Point of Entry to the Transportation System (PIST), and instructs the Energy Secretariat to implement it.
The decree specifies that the The Gas Plan is based on voluntary participation by producing companies, providers of public distribution and sub-distribution services that make direct purchases from producers and from the Wholesale Electricity Market Management Company (Cammesa).
The Plan includes, as objectives, make investments in natural gas production viable with the aim of meeting the country's hydrocarbon needs with the production of its own deposits.
As well, It aims to protect the rights of current and future users of natural gas;oto promote the development of national aggregates in the value chain of the entire gas industry; to maintain jobs in the natural gas production chain; and to replace imports of Liquefied Natural Gas (LNG) and the consumption of liquid fuels by the national electrical system.
The The plan aims to contribute to a surplus energy balance and to the development of the Government's fiscal objectives; generate long-term certainty in the hydrocarbon production and distribution sectors; provide predictability in the supply of priority demand and the thermal power generation segment; and establish a transparent, open and competitive system for the formation of the price of natural gas compatible with the energy policy objectives established by the Government.
The decree also establishes Energy as the implementing authority and empowers it to implement the supply of volumes, terms and maximum reference prices of natural gas in the PIST, applicable to contracts or agreements between suppliers and demanders entered into within the framework of the Plan, and which guarantee the free formation and transparency of prices.
"The National Executive Branch considers it appropriate to declare the promotion of Argentine natural gas production to be of national public interest and a priority objective of the Argentine Republic," the decree's recitals state.
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