Argentine gas: Domestic demand, exports fall as Brazil dispatch nod sought

Argentine natural gas exports fell 9% year-on-year in January, according to data from regulator Enargas.

The country piped 8.84Mm3/d (million cubic meters per day) last month compared with 9.73Mm3/d a year earlier, with the drop largely due to lower dispatches to key export market Chile.

Argentine producers exported 8.76Mm3/d to Chile, down from 9.57Mm3/d in January 2023. Of the monthly total to Chile, 5.39Mm3/d was sent to Santiago Metropolitan region via the GasAndes duct and the balance to northern, central-south and southern regions through the Norandino link, the Pacífico pipeline and three Methanex ducts, respectively.    

Uruguay accounted for 80,000m3/d, dispatched through the Cruz del Sur pipeline.

In December, Argentine domestic gas output was 114Mm3/d, down 11.3% year-on-year, according to data from the General Mosconi institute energy think tank.

Dampened demand from Argentine thermoelectric generators combined with an improvement in hydrological conditions in Chile’s power sector following a rainy winter season have played a role, BNamericas has learnt.

As a result, some Argentine gas producers have had to close wells to halt production.

Power demand in Argentina was down 9.7% year-on-year in December to 11.8TWh, according to data from wholesale power market administrator Cammesa. Thermoelectric generation was down 32.8% to 5.21TWh, with improved hydrological conditions and higher non-conventional renewables and nuclear generation among factors. In Chile, gas-fired generation was 557GWh in December compared with 1.32TWh in December 2022.

Argentine hydropower output in December was up 44.8% to 4.17GWh. In Chile, hydropower dams and run-of-the-river plants produced 1.386TWh and 1.333TWh, respectively, in December, compared with a total for both technologies of 2.09TWh in December 2022, according to data from local power generator chamber Generadoras de Chile.

EXPORT AUTHORIZATION REQUESTS

Argentina published 11 natural gas exportation authorization requests in January, from state energy firm Enarsa and private sector players Pluspetrol, Total Austral and Vista Energy Argentina. 

The companies were given the green light.

- Enarsa sought authorization to pipe up to 2.80Mm3/d to Brazilian thermoelectric generator Ambar Uruguaiana Energía on an interruptible basis from January 29 to May 1. 

The source is production under contracts of round No. 4.2 of supply program Plan Gas, gas from the Megsa market, and regasified LNG imported via the Escobar terminal in Buenos Aires province.

In 2021, Argentina resumed exports to Brazil via the 437km Aldea Brasilera-Uruguaina link, helping its neighbor mitigate the impact of a drought. Exports later ceased amid an improvement in conditions. A current drought is impacting some hydropower dam levels in Brazil and raising demand for thermopower. 

- Plupetrol sought authorization to sell up to 500,000m3/d to Uruguayan distributor Conecta on an interruptible basis from February 1, 2024, to January 1, 2026. The source is the Pluspetrol’s La Calera asset in the Vaca Muerta unconventional hydrocarbons formation.

- Total Austral applied for permission to pipe up to 2.50Mm3/d to Shell Chile on an interruptible basis from February 1, 2024, to May 1, 2026, with the source being the San Roque, Aguada Pichana Este and Rincón la Ceniza licenses in the Neuquén basin. 

- Vista Energy sought the nod to pipe up to 150,000m3/d on an interruptible basis from January 4, 2024, to January 1, 2025, to Cinergia Holding International in Uruguay. Sources are multiple blocks in Río Negro and Neuquén provinces, some recently transferred to Aconcagua Energía, under a deal where Vista has rights to a portion of associated output. 

The authorization request lists the following acreage: 25 de Mayo - Medanito; Charco del Palenque; Entre Lomas; Jagüel de los Machos; Jarilla Quemada (Río Negro) and/or Bajada de Palo Oeste; Bajada de Palo Este; Coirón Amargo Norte; and Entre Lomas (Neuquén).

- Vista also applied to pipe up to 300,000m3/d to Cinergia Chile on an interruptible basis over the same period and via the same blocks.

- Pluspetrol sought permission to send up to 1.10Mm3/d on a firm basis to Chilean unit Pluspetrol Chile from October 1 to December 1, with the La Calera acreage the source.

- In a separate request, Pluspetrol sought authorization to pipe up to 265,013m3/d of La Calera gas on a firm basis from May 1 to September 30.

- State oil firm YPF asked for the green light to send up to 1.28Mm3/d to Chilean unit YPF Chile on a firm basis from October 1 to December 31. The source is El Portón and Loma La Lata-Sierra Barrosa in the Neuquén basin.

- In a separate request, YPF sought authorization to pipe 1.19Mm3/d from the same assets to its Chilean unit on a firm basis from May 1 to September 30.

- Pluspetrol filed a fourth request, to pipe up to 128,824m3/d of La Calera gas to Cinergia Chile on a firm basis from October 1 to December 31.

- The company also filed a fifth, to dispatch up to 40,157m3/d of La Calera gas to Cinergia Chile on a firm basis from May 1 to September 30.

Argentine President Javier Milei’s sprawling 'omnibus' bill, currently in congress, lifts government control over oil exports but establishes that gas exports will be regulated by the executive branch. 

LNG

Argentina, which has a lot of natural gas, wants to start exporting LNG. YPF is looking to involve third parties in a liquefaction project planned with Malaysian counterpart Petronas. 

Exporting to the region’s economic powerhouse, Brazil, potentially through Bolivia, has also been mulled.  

Despite work to boost production and buildout supporting infrastructure, Argentina cannot cover gas demand peaks with domestic output and needs to import LNG, a major drain on the country’s already-battered coffers. A focus is on flattening the demand curve via exports.