Southern Cone green hydrogen, hydrocarbons watch

E&P firm President Energy said details of where green hydrogen subsidiary Atome will develop projects will be revealed before its planned flotation.

One project is proposed for Europe, the other the Americas. 

Atome is due to be floated on the AIM market of the London stock exchange before the end of the year under the ticker ATOM.  

The UK-based company has a presence in Argentina, Paraguay and the US. The bulk of production comes from Argentina, where it has assets in Salta and Río Negro provinces.   

President Energy chairman Peter Levine told British media outlet Core Finance: "We're involved in two countries. We cannot, for commercial reasons, at this moment, identify those countries. But what I can say to you is that they will be revealed nearer the time of the flotation, which, as I have said, we're aiming for towards the end of this year."

Levine told Core Finance that Atome would use existing installed clean generation capacity in the target markets, rather than building power plants, adding there was also existing local demand. 

He said that commissioning of the first project could happen end-2023/early 2024. 

"For us, the important things are supply of electricity, in the right place, including water and land and the end market. Those are the key issues," Levine said.

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Argentine state energy company IEASA has taken a step along the green hydrogen highway.

IEASA said it had signed an agreement with German applied research organization Fraunhofer for the “technical and economic development” of a planned wind-powered production hub in Bahía Blanca, Buenos Aires province. 

With an end goal of producing green ammonia for the export market, the project would be the first large-scale scheme of its kind in Argentina. 

Ammonia is cheaper and easier to store than hydrogen, with the maritime industry seen as an early adopter.

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Synthetic fuels, chiefly green aviation fuel.

That is an area where Uruguay could have the strongest competitive edge in the long-term in the green hydrogen sphere.

That was among the provisional takeaways from a virtual meeting of more than 70 participants from across the public and private sectors and academia.

Uruguay’s government has established three dialogue platforms to channel input for a planned sector development blueprint.

In parallel, the government is working on plans for a green hydrogen production and application pilot scheme. 

Terms of a planned tender will be published by the end of the year, the government said in a statement. Up for grabs are investment incentives spanning electricity supply and grid connection, as well as access to state energy company Ancap’s infrastructure, land and technical support services, the government has said previously. Uruguay is seeking parties interested in investing in a production facility and a fleet of hydrogen-powered heavy transport vehicles. 

Uruguay’s hydrogen vision also involves establishing an offshore production hub, leveraging the country’s large marine wind power potential. 

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Oil output in Argentina’s top-producing hydrocarbons province, Neuquén, hit a 17-year high in September.

Production grew 40.2% year-on-year and 7.64% month-on-month to 213,808b/d, the provincial government said in a statement. 

Month-on-month growth was chiefly driven by areas La Amarga Chica (+5,997b/d), Cruz de Lorena (+3,713 b/d), Bandurria Sur (+3,692b/d), Loma Campana (+3,275b/d) and Bajo del Choique-La Invernada (+2,274b/d).

The province aims to reach a production rate of 235,000b/d by the end of the year.

Natural gas production rose 20.3% year-on-year and fell 0.22% month-on-month. The month-on-month decline was largely on account of Fortín de Piedra (-0.88Mm3/d), San Roque (-0.21Mm3/d), Loma La Lata-Sierra Barrosa (-0.17Mm3/d) and Aguada de Castro (-0.12Mm3/d). 

Argentina's government recently announced the launch of a third round of natural gas incentives program Plan Gas. Up for grabs are supply contracts. 

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In related news, Neuquén said four companies had signed six agreements under a tax credit scheme designed to spur output from conventional reservoirs. 

Associated investment is US$6.35mn. 

The average tax benefit is around 44% of committed investment, which can be used against tax on gross income.  

The firms had presented, for evaluation, reactivation plans earlier in the year.

In total, 31 conventional well interventions will be carried out (23 oil, five gas and three injector), the definitive abandonment of six wells and the electrification of area Coirón Amargo Norte. 

The areas covered in the agreements are Los Bastos, operated by Tecpetrol; Coirón Amargo Norte, operated by Vista Oil & Gas; Centenario Centro, operated by Pluspetrol; and areas Cerro Bandera, Anticlinal Campamento and Al Sur de la Dorsal, operated by Oilstone Energía.  

The bulk of Neuquén’s oil and gas comes from unconventional resources. 

Neuquén’s program is designed to recover levels of output of conventional hydrocarbons and incentivize development of the province’s resources. Chubut and Río Negro provinces have already launched incentives programs to boost oil production. Mendoza province has introduced a similar scheme.

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Neighboring Mendoza was due to launch a process this month to secure an operator, without cession of rights, for the Loma de la Mina area, BNamericas was told.