Argentine natural gas export requests triple in November

Argentina has published 25 natural gas export authorization requests this month, up from seven in October.

In line with an established trend, the bulk concern dispatches to Chile, according to federal energy department data.

Just two are for exports to other markets, namely Brazil. 

Brazil requests

Both were submitted by Total Austral, seeking the green light to pipe the fuel and industrial feedstock to MGAS Comercializadora de Gas Natural on an interruptible basis. 

Gas origin is the CMA-1 concession, offshore Tierra del Fuego province, along with the San Roque, Aguada Pichana Este and Rincón La Ceniza licenses in Neuquén province, home to the bulk of the Vaca Muerta unconventional hydrocarbons formation. 

Both are for up to 1.5Mm3/d (million cubic meters per day) from the date of authorization to May 1, 2026, to be dispatch to Brazil via the existing TGM duct connecting Argentina’s Entre Ríos province to a thermoelectric plant in Uruguayana in Brazil’s Rio Grande do Sul state.

In terms of other export routes, Argentina is positioned to export gas to Brazil via Bolivian infrastructure, following completion of the Gasoducto Norte flow-reversal project, permitting the flow north of Vaca Muerta gas. Bolivia will initially offer to Argentine producers 4Mm3/d of capacity along a 1,000km stretch of interconnected ducts. 

Based on the latest data from Argentine gas regulator Enargas, from October, exports to Brazil via Bolivia have not started. An initial 2Mm3/d is expected, climbing eventually to 30Mm3/d in 2030. 

Also read: Argentine gas supply to Brazil expected to facilitate local competition

Four Argentine producers – Tecpetrol, Pluspetrol, Pan American Energy (PAE) and Total Austral – have sought the green light from Buenos Aires to dispatch production to Brazil via Bolivia. Combined authorizations – which are on an interruptible basis – are for a maximum 6.3Mm3/d.

Chile requests

The Chilean November export requests involve Argentine sellers Shell, Tecpetrol, Pampa Energía, Wintershall Dea, PAE, PAE unit Pan American Sur, Pluspetrol, Mobil, YPF, Total Austral and CGC. 

Buyers are Engie Energía, Faro Energía, Pluspetrol, Cinergia, Shell, Methanex, YPF, Pampa Energía, Enel Generación and Gasvalpo.

Exports

Argentine gas exports fell 12% year-on-year in October to 6.79Mm3/d, according to data from Enargas. 

Piped gas exports tend to peak around January-April, when domestic demand falls and producers seek markets for output. 

The country has several LNG projects on the drawing board. A public consultation for one of them, planned by Southern Energy and involving the use of floating infrastructure off the coast of Río Negro province, is due to be held in December.

New infrastructure, routes

Talks have been held regarding expanding gas exports between Argentina and Brazil, with one option mulled being a new duct that passes through – and also serves – mutual neighbor Paraguay.

Others are adapting the Bolivia-Brazil gas pipeline (Gasbol), deploying a connection in Uruguayana and importing LNG.

Regional energy association Olade is working to help lay the foundations of increased natural gas integration in South America. 

Argentina is seen potentially playing a bigger future supplier role, given the potential of Vaca Muerta and falling output in Bolivia. 

Argentine gas production was 147Mm3/d in September, up 2.8% year-on-year, according to data from consultancy Economía & Energía. Conventional output fell 6.9% to 51.6Mm3/d, as nonconventional production climbed 8.9% to 95.6Mm3/d.