Argentine LNG promotion bill clears lower house

Argentina’s lower house of congress approved an LNG promotion bill that was submitted earlier this year by the government.

The draft legislation now moves to the senate after receiving 126 votes in favor and seven against. Over 100 lawmakers abstained.

A robust regulatory framework, supply guarantees and increased macroeconomic stability are seen as necessary to help unlock the heavy investment needed to build liquefaction and supporting infrastructure and get the requisite volumes of gas flowing. 

Argentina sits on huge shale gas reserves and currently exports via pipeline, chiefly to Chile. Midstream investment is being made to support production growth to help substitute expensive imports and boost exports.

Two major LNG projects are in the studies phase, both targeting Buenos Aires province. One is proposed by midstream player TGS and US logistics firm Excelerate Energy, the other by state-controlled oil firm YPF and its Malaysian counterpart Petronas.

Development of an LNG-exporting industry would likely see Neuquén province drawing the bulk of associated upstream investment. The jurisdiction has a large chunk of the Vaca Muerta unconventional hydrocarbons formation.

The clock is ticking for the administration of President Alberto Fernández since general elections will be held on October 22 and the next president - who could be either right-wing, center-right or center-left - is scheduled to take office on December 10.

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