Hydrocarbon producers in Argentina are waiting for the government to send a bill to Congress to promote the production of liquefied natural gas (LNG). And for the executive president of YPF, Pablo Iuliano, this will happen in the coming weeks.
From the CERAWeek conference taking place in Houston, the most important event in the world oil & gas industry, Iuliano also highlighted that they expect this year for the construction of the second part of the Néstor Kirchner Gas Pipeline, and that the government is actively looking for a bank to finance the project.
The bill, which the producers hoped was already under discussion in Congress, would be encouraging the construction of LNG plants and pipeline infrastructure.
In February, a source at Argentina’s energy ministry told Reuters that the project, which seeks to attract investments in millions of dollars, would be addressed by Congress starting in March.
“We see this law as an excellent first step (to create) the conditions in the future for other businesses,” said Iuliano from the US. And I add: “It is absolutely necessary”.
Furthermore, according to Iuliano, the law should include measures to ensure fiscal stability, access to foreign exchange markets and permits companies to invest in long-term gas and LNG projects.
The YPF CEO also noted that YPF and Petronas Malaysia expect to make a final decision next year on investing in a first phase of a massive $60 billion natural gas project in Argentina.
The project is crucial for the country to monetize its reserves and become an exporter of liquefied natural gas (LNG).
A Petronas delegation traveled to Argentina in February to plan the project. In a first phase, between 5,000 and 6,000 million dollars would be needed to build the infrastructure capable of producing up to 5 million tons of LNG per year.
Additionally, YPF also plans to make a final investment decision this year regarding a midstream oil project, integrating a pipeline from the Vaca Muerta region together with a terminal and a “monobuoy” to service cargo ships for export.
The gas project with Petronas, the oil terminal and a two-phase gas pipeline linking Vaca Muerta to the north of the country They are needed to increase the country’s hydrocarbon production and export.
Argentina hosts one of the world’s largest reserves of unconventional gas, but the country, in need of foreign currency, is forced to import much of the fuel it uses to generate electricity. Its energy deficit for the past year was estimated at about $5 billion.
NS
Source: Clarin
