Argentina moves to revive stalled gas pipeline projects

Argentina’s natural gas regulator Enargas is taking steps to add momentum to a planned expansion of the country’s distribution network.

The regulator, which was recently intervened by the current administration of Alberto Fernández, held a meeting with gas distributors to discuss a list of works that have been postponed for different reasons and could be revived.

The meeting included representatives of distributors Gas Nea, Naturgy Ban, Litoral Gas, Metrogas, Ecogas, Redengas, Gasnor, Camuzzi Gas Pampeana and Camuzzi Gas del Sur, according to local press.

The main projects are Gasoducto Norte in Santa Cruz province, Gasoducto Sur in Mendoza province, La Cruz and Ballesteros in Córdoba province, Gasoducto de la Costa in Buenos Aires Province and a missing portion of the Gasoducto Regional Sur in Santa Fe.

Whether the government implements some form of price adjustment process for natural gas will be key to determine the capacity of distributors to invest in expansion projects. Some authorities have given signals a new adjustment scheme is in the works for deployment after December, but history suggests the state of Argentina’s economy is more likely to be the deciding factor.

The government is holding the meetings as part of industry-wide negotiations surrounding a large-scale natural gas subsidy plan that will reward companies for maintaining their production close to pre-pandemic levels, as BNamericas reported previously.

The companies are also discussing improvements to the country’s electronic natural gas auction platform Megsa to propose to the authorities.