Argentine drillers authorized to dispatch gas to Brazil via Bolivia

Argentina’s federal energy department published six natural gas exportation authorization requests last month, up from two in May.

Two of the June requests – granted – are for dispatches to Brazil on an interruptible basis.

One authorization request involves Argentine driller Tecpetrol dispatching up to 1.5Mm3/d (million cubic meters per day) to Brazil on an interruptible basis from June 2024 to April 2026, with the point of export the Argentine-Bolivian border. The offtaker is MGAS Comercializadora de Gas Natural, a Brazilian gas trader. The gas is for power generation, industrial and domestic use, according to a document published by Argentina’s federal energy department.

The other request was filed by Pan American Energy, seeking to pipe up to 300,000m3/d to Brazil on an interruptible basis from date of authorization to May 2025, with the point of export the Argentina-Bolivia border flange of a pipeline operated by state energy company Energía Argentina. The offtaker is Brazilian gas trader Tradener. The gas is for power generation and industrial use, according to a document published by the federal energy department.

BNamericas has contacted Tecpetrol and Pan American Energy for more information.

Argentina is carrying out a flow-reversal project to support the transport of Neuquén basin gas north, to supply local offtakers and spur exports.

In June, Bolivian state hydrocarbons company YPFB said its gas network was ready to dispatch Argentine gas to Brazil, up to 3Mm3/d. Engineers are working to boost capacity to over 10Mm3/d in the medium-term, YPFB said.

In contrast, imports of Bolivian gas to Argentina have been dwindling.

The other four requests are to pipe gas to Chile, via the northern GasAtacama link, the central Gasoducto Pacífico and GasAndes pipelines and the southern El Cóndor-Posesión connection.

A total of 3.8Mm3/d was programmed for export on Tuesday via Argentina's TGN gas transport network, which links to Bolivian infrastructure. A volume of 300,000m3/d was scheduled for export via the TGS network.

Argentina gas export authorization requests published in May

Seller: Pampa Energía
Buyer: Pampa Energía Chile
Maximum quantity: 1Mm3/d (interruptible basis) from Neuquén basin areas Río Neuquén, Sierra Chata, El Mangrullo and Rincón El Mangrullo.
Dates: From date of authorization to May 1, 2025 (via link Gasoducto del Pacífico)

Seller: Pampa Energía
Buyer: Pampa Energía Chile
Maximum quantity: 1Mm3/d (interruptible basis) from Neuquén basin areas Río Neuquén, Sierra Chata, El Mangrullo and Rincón El Mangrullo.
Dates: From date of authorization to May 1, 2025 (via GasAndes link)

Seller: Vista Energy Argentina
Buyer: Cinergia Chile
Maximum quantity: 50,000m3/d interruptible basis, from acreage Acambuco, in the Noroeste basin.
Dates: From date of authorization to January 1, 2026 (via link GasAtacama)

Seller: Wintershall Dea Argentina
Buyer: Methanex Chile
Maximum quantity: 800,000m3/d (interruptible basis) from CMA-1 in the Austral basin.
Dates: From date of authorization to December 31, 2024 (via link El Cóndor-Posesión)

Seller: Tecpetrol
Buyer: MGAS Comercializadora de Gas Natural
Maximum quantity: 1.5Mm3/d (interruptible basis) from Fortín de Piedra in the Neuquén basin.
Dates: From date of authorization to May 1, 2026 

Seller: Pan American Energy
Buyer: Tradener
Maximum quantity: 300,000m3/d (interruptible basis) from Acambuco, in the Noroeste basin.
Dates: From date of authorization to May 1, 2025 

Exports

Argentine gas export volumes climbed 3% year-on-year in May to 6.78Mm3/d, according to data from natural gas regulator Enargas.

Enargas, in a monthly report, said the bulk, 6.40Mm3/d, was piped to Chile, chiefly through the GasAndes duct, which connects the Neuquén basin to Santiago metropolitan region. The balance of 380,000m3/d was dispatched to Uruguay.

Legislation

President Javier Milei’s economic reform bill, which deregulates hydrocarbons exports, is now law.

The legislation gives companies freedom to export, provided the federal energy department does not object within a given timeframe.

Stakeholders, particularly those operating in the piped natural gas market, are awaiting the secondary legislation that will guide its implementation. 

Currently, oil and gas exporters need the green light from the federal energy department. 

In terms of LNG exports, state-controlled oil firm YPF has a project planned, as do gas transporter TGS and US energy logistics firm Excelerate Energy. 

This month it emerged that Pan American Energy had signed an LNG-exporting agreement.