Argentine gas dispatches increase in April, firm export authorizations sought

Argentine gas exports rose 6% year-on-year in April to 9.62Mm3/d, ahead of a likely drop in May when the mercury tends to fall and local gas demand climbs.

Chile accounted for 9.40Mm3/d, up 5%, as dispatches to Uruguay rose 23% to 210,000m3/d, according to Argentine gas regulator Enargas.  

The bulk of exports to Chile – 7.66Mm3/d – were sent through the GasAndes duct, linking the Neuquén basin to Santiago.

Argentina also exported 560,000m3/d to Chile, up 129% year-on-year, via the Pacífico pipeline. Last year firm exports through the duct started following a joint government announcement. 

Argentina is working to build year-round firm exports, chiefly to provide outlets for growing production in the Neuquén basin, home to the Vaca Muerta unconventionals formation, and generate much-needed foreign currency.

Producers Pan American Energy (345,455m3/d), Pampa Energía (1.16Mm3/d), Total Austral (359,091m3/d) and Tecpetrol (531,818m3/d) have logged authorization requests this year for firm exports to Chilean generator Enel Generación from May 1 to July 1. Requests to export to fellow generator GM Holdings and trader Cinergia Chile on a firm basis were also published.

Enel, meanwhile, recently said it was also negotiating further contracts.

In May 2022, Argentine gas exports dropped to 3.10Mm3/d from 9.11M3/d the previous month. This year gas exports peaked in February at 10.1Mm3/d.

Gas production was 130Mm3/d in February, up 2.0% year-on-year, according to a report from the General Mosconi institute energy think tank.

Participants in production incentives program Plan Gas that meet their supply commitments would be given preferential rights to export natural gas or LNG on a firm basis. Argentina does not have export-scale liquefaction facilities, but developers are mulling several projects. The country has export ducts to Chile, Uruguay and Brazil. 

APRIL AUTHORIZATION REQUESTS 

The federal energy department published five natural gas export authorization requests in April, compared with zero in March and 12 in February. 

Vendor: Pan American Energy
Buyer: Colbún
Maximum amount: 1Mm3/d (non-firm basis), May 1, 2023 to May 1, 2025.
 Source: Aguada San Roque, Bandurria Centro, Lindero Atravesado, Aguada Pichana Oeste, Aguada Pichana Este, in the Neuquén basin.

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Vendor: Petrobras Operaciones
Buyer:  Cinergia Chile
Maximum amount: 90,909m3/d (firm basis), from May 1, 2023 to June 30, 2023.
Source: Río Neuquén in the Neuquén basin.

***

Vendor: Pampa Energía
Buyer: Enel Generación Chile
Maximum amount: 1Mm3/d (non-firm basis), from May 1, 2023 to May 1, 2025.
Source: Río Neuquén, Sierra Chata and El Mangrullo in the Neuquén basin.

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Vendor: Mobil Argentina
Buyer:  Cinergia Chile
Maximum amount: 750,000m3/d (non-firm basis), from May 1, 2023 to May 1, 2024.
Source: Sierra Chata in the Neuquén basin.

***

Vendor: Total Austral
Buyer: Enel Generación Chile
Maximum amount: 3Mm3/d (non-firm basis), from May 1, 2023 to May 1, 2024.
Source: San Roque, Aguada Pichana Este and Rincón La Ceniza in the Neuquén basin.

In other hydrocarbons sector news from Argentina, Neuquén province’s state-run oil company GyP said it was evaluating economic bids received from two parties for exploration contracts at two reserved Vaca Muerta shale play blocks.

GyP is offering rights at Bajo del Toro Este (133km2) and Las Tacanas Norte (120km2)

Selva María Oil and Interoil Argentina placed a joint bid of US$21.5mn for the former acreage and Pampa Energía made an offer of US$8.92mn for the latter. Gas-focused Pampa Energía recently said it was sharpening its focus on oil.

Economic offers encompass 3D seismic work and exploration well drilling.