The Government established a new simplified process for authorizing natural gas exports, through the 417 / 2019 resolution of the Energy Secretariat, published in the Official Gazette,
The objective of the measure is to increase gas exports, mainly to Chile, which has an energy matrix dependent on Liquefied Natural Gas (LNG), after the abrupt suspension of shipments from Argentina in 2007 due to the fall in production. In September 2018, Argentina returned to exporting gas to Chile under the interruptible modality.
In May, gas production grew by 7,6%, the highest in 10 years. During the first half of 2019, an average of 5.9 million m3 per day was exported, including shipments to Chile, Brazil and Uruguay.
“Increasing export volumes, mainly to Chile, is an important step to give a new boost to the development of Vaca Muerta gas,” said Energy Secretary Gustavo Lopetegui. “Our great challenge is to continue increasing production to supply the domestic market and become gas exporters throughout the year. This will allow us to converge at lower prices for the domestic market, both for households and for the industrial sector," he added.
In addition to increasing exports to Chile, the official highlighted two main objectives for the coming years: replace LNG imports that the country still makes and boost gas-intensive industrial sectors such as the petrochemical hub of Bahía Blanca or the production of fertilizers and paper, among others.
Between 2006 and 2013, Argentina went from having an energy trade surplus of US$ 6.100 billion to a deficit of US$ 6.900 billion. (a negative jump of US$ 13.000 billion). Last year, the deficit was US$ 2.300 billion, and this year it is expected to be close to equilibrium.
This new framework also provides mechanisms for authorizing “firm” gas exports. These exports, which are non-interruptible, may be carried out between September 15 and May 15 of the following year and must comply with the condition of not affecting local supplies.
electronic file
In order to facilitate firm export orders and authorizations, applications will be made through the electronic platform for Remote Procedures (TAD) and the supervision and granting of the request will be the responsibility of the Undersecretariat of Hydrocarbons and Fuels of the Government Secretariat of Energy.
To obtain the corresponding authorization, companies must report the destination and origin of natural gas; maximum and scheduled, daily and total quantities; and gas prices at the border point, among other variables.
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