Argentina issues new gas rationing call

Argentine authorities asked industrial users of natural gas to reduce consumption amid cold temperatures, curtailed supply from Bolivia and the delayed arrival of LNG tankers.

Bolivian state hydrocarbons company YPFB said it would be reducing gas dispatch to Argentina by 5Mm3/d for an undisclosed length of time due to increased demand from Brazil, Argentina's energy ministry said in a statement.

Bolivia's gas supply commitments to Brazil take precedence over its commitments to Argentina, the ministry said.

With minimum temperatures in Argentina approaching freezing with the start of the South American winter and unfavorable weather conditions preventing the scheduled arrival of LNG cargoes, the country must prioritize residential gas consumption, the ministry said.

The gas rationing call is the second in as many weeks, after an oil and gas workers strike in Tierra del Fuego province led to a supply shortage at the beginning of June, and underscores the urgency for Argentina to increase domestic gas output.

Wood Mackenzie's director of gas and power consulting for Latin America, Eric Eyberg, told BNamericas in December that Argentine demand for Bolivian gas is likely to increase over the coming years.