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Argentina begins natural gas exports to Chile

Posted by On November 01, 2018

Argentina begins natural gas exports to Chile

Argentina has re-started exporting natural gas to neighboring Chile thanks to a surge in production in its Vaca Muerta Shale play, Kallanish Energy learns from the Argentine energy ministry.

Shipments began Oct. 30, and under the current agreement will last until May 1, 2019. Some 1.3 million cubic meters per day (Mmcm/d) will be exported via the Gasoducto GasAndes pipeline â€" a 463-kilometer (288-mile) line connecting La Mora in Argentina’s Mendoza Province to San Bernando, in Chile’s metropolitan region.

The resumption of Argentine gas exports to Chile is a milestone for the two governments, following a diplomatic crisis in the mid-2020s. Then, Argentina was a major supplier of gas to highly-import dependent Chile, but due to a domestic supply shortage, it halted exports to the neighboring country.

“We are very happy for this historic day that leads us to open this valve and for this path of energy integration. Vaca Muerta is a resource that is available to our fellow brothers in the region, ” said Argentina’s energy secretary, Javier Iguacel.

“We are having better wells and production every day. The Vaca Muerta gas grew almost 250% year-on-year in volume. This abundance translates into competitive prices and a better quality of life for all,” he added.

Chilean President Sebastian Pinera said “we are working enthusiastically with (Argentine) President Mauricio Macri to integrate our energy supply.” The idea is for Argentine gas to generate electricity in Chile, with power potentially put back into the Argentine grid.

To date, there are at least eight companies negotiating the purchase of Argentine gas, the ministry said. These contracts are currently under consideration by Argentine authorities.

Argentina’s Compania General de Combustibles (CGC) is allowed to export gas to Chile if there’s no interruption to domestic supply.

Source: Google News Argentina | Netizen 24 Argentina

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