Argentina launches bioethanol projects call

Argentina is looking to ramp up production of bioethanol.

Officials announced a call for new plants or expansions of existing facilities, with a goal of obtaining a minimum 250,000m3/y for blending with standard gasoline.

In a scenario of increased fuel consumption, biofuel demand by companies that blend the liquid with standard gasoline has outstripped supply, a resolution issued by the federal energy department said.   

Officials will assign production quotas for new-build plants and modify quotas for expansion projects.

A law in force until 2030 establishes that the final gasoline mix should contain 12% bioethanol, produced in Argentina from sugarcane and corn.

The resolution states that spurring a higher proportion was prudent in cases where this is technically viable.

When evaluating offers, officials will consider multiple factors, among them timeframes, location, efficiency and carbon footprint, export potential and local content.

Bidders have 45 days to present projects from the publication of the terms and conditions. 

The resolution instructs the federal hydrocarbons division to advance the call preparation process.

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Trader Trafigura has started exporting oil from a new terminal at Bahía Blanca in Buenos Aires province.

Officials loaded 200,000b of Medanito crude from the Vaca Muerta shale play for dispatch.

The terminal and Oiltanking Ebytem facilities at Puerto Rosales are the only two Atlantic coast export points for oil from unconventional fields in the Neuquén basin, local media outlet EconoJournal reported.

ALSO READ: Trafigura outlines Argentina refinery site projects

In Argentina, Trafigura controls the Puma chain of gas stations.

Midstream firm Oldelval is executing a project to boost dispatch capacity between the basin and Puerto Rosales. State-controlled oil firm YPF has a project to build a third Atlantic outlet for Neuquén basin oil, involving a new pipeline and a new terminal in Río Negro province. 

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Because of scarce dollar reserves, Argentina’s biggest hydrocarbons company, YPF, is seeking Chinese providers to utilize yuans held by the central bank.

YPF, local media outlet Más Energía reported, citing broadcaster Radio Nacional, is targeting Chinese providers operating in the Vaca Muerta unconventional hydrocarbons formation, where the company is heavily focused on ramping up shale oil production for export.

A central objective of the move is ensuring that activity is not impacted by import restrictions designed to help protect dollar reserves.

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Drilling services company DLS Archer has suspended a rig overhaul planned for September, citing problems importing requisite components, local press reported. 

DLS Archer failed to obtain the green light from Argentina’s import system SIRA, adding that other firms in the segment were warning of short-term operational risks.