Argentina to License Initial LNG Import Cargoes for Winter

Argentina’s state-owned IEASA will hold a tender February 26 for the year’s first 12 LNG import cargoes for use during the coming winter, according to local media reports.

The shipments will correspond to Argentina’s autumn and winter period between May and August, online media outlet EconoJournal said, and reach the country via the Escobar regasification terminal in the province of Buenos Aires.

Argentina is expected to import between 30 and 35 LNG cargoes in 2019 compared to 50 cargoes in 2018 via chartered regasification ships (FSRUs) berthed at the ports of Bahía Blanca and Escobar. Argentina spent an estimated $1.2bn last year to import LNG.

Argentina, which holds the world’s second largest recoverable shale gas resources, at 802 trillion ft³, continues to move forward with plans to attract investments and boost output from the Vaca Muerta shale formation. Rising output from the unconventional formation will allow Argentina to continue to export gas to Chile and reduce its need for pipeline imports from Bolivia and LNG imports from abroad.

IEASA will transmit the event live via its YouTube channel in a move to strengthen the transparency of the process, EconoJournal said.