Argentina Prepares Energy Legislation to Develop Natural Gas Plans
- September 22, 2022
- Posted by: Quatro Strategies
- Category: Legislation
Argentinian President Fernandez said on Wednesday that his government prepares an energy legislation to submit to the national congress in the coming days that “would give certainty” to energy producers and advance the country’s energy agenda, including LNG. Fernandez argued that the Vaca Muerta shale basin, the world’s second largest unconventional gas reserve and the fourth largest oil reserve, gives the country strong advantages in oil and gas markets.
“I am convinced that based on the amount of reserves that Argentina has, we must think about designing a country where energy is the central axis,” Fernandez told the audience of energy executives in Houston. The companies present in Fernendez’s speech included Chevron, Exxon Mobil, Equinor, Shell and Schlumberger.
Fernandez added that the energy bill, being drafted with Economy Minister Massa, will cover LNG, hydrogen, lithium, solar and other forms of energy.
The South American country will have an energy trade deficit again this year, Fernandez said, but the government expects that rising output in Vaca Muerta and the construction of a key domestic gas pipeline will reverse that deficit. By 2026 Argentina would register a $13 billion energy trade surplus, he said.
Energy companies operating in Argentina hope the gas line will be ready soon, executives in the meeting said, noting that a lack of sufficient capacity has delayed some gas production increase plans and held backoutput of oil and associated-gas.
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