Costanera declares force majeur on exports

Argentine generator Central Costanera has declared force majeur on its power export commitments to Brazil and asked its contract partners, trading company Cemsa and transmission company Cien, to increase the prices in the contract, Costanera said in a statement to the Buenos Aires stock exchange. "The situation now is very different to the situation when the contracts were signed," Costanera investor relations head Sergio Louzau told BNamericas, referring to the high price of oil and pointing out that price revisions are laid out in the terms of the contract. The companies are all part of the Endesa Spain group. Louzau said that there could be an agreement in 30-60 days. The reason for declaring force majeur was not the natural gas shortages that Argentine thermoelectric generators are subject to, but because of the limited availability of power that Costanera could buy to meet its export commitments, and government restrictions on the purchase of any power available, Louzau said. Costanera has been able to meet only an average of some 60% of its export commitment, which is for up to 1,062MW, since April 4. The company has 2,311MW installed capacity and in March set a generation record of 1,060GWh for the month, producing a constant 1,368MWh/day, Louzau said. Operations are continuing using natural gas in the combined cycle units and fuel oil in other units.