Argentina, Chile Agree New Gas Exports
Bilateral discussions on March 20 between officials from Argentina and Chile led to the approval of natural gas exports to Chile for 500,000 m3/day from Argentina’s YPF and 1.5mn m3/day from a local subsidiary of French Total until May 1.
The new export agreement was announced following discussions in Buenos Aires between Argentine energy secretariat Gustavo Lopetegui, Chilean president Sebastian Pinera and Jimenez Schuster, Chile’s energy minister, aimed at boosting Argentine gas exports to Chile during the eight-month period of reduced demand in Argentina, between September 15 and May 15. Argentine’s summer exports to Chile typically average about 5mn m3/day.
Both countries continue to seek mechanisms to give certainty to the private sector to establish non-interruptible sales contracts during the summer months to guarantee local supply through alternative fuels during the days of greatest consumption.
“Increasing exports to Chile is the first step, however, our greatest challenge is to continue increasing production to supply the domestic market and to be able to become a gas exporter during the entire year,” Lopetegui said.