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Montevideo, September 20th 2018 - 14:44 UTC

Chile to provide gas to Argentina in winter months; Enap and YPF will increase production in Magallanes

Monday, February 1st 2016 - 05:48 UTC
Full article 49 comments

The government of Chile will be selling energy-short Argentina 5.5 million cubic feet of natural gas a day starting in May, providing also 200 MW of electricity through the interconnection system between both countries. Chile also committed to invest 200 million dollars in the Incremental Project of the Magallanes Area to boost hydrocarbon production. Read full article

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  • ChrisR

    I should demand cash upfront.

    Feb 01st, 2016 - 11:21 am - Link - Report abuse 0
  • Marti Llazo

    Article: “Only two decades ago Chile became totally dependent on Argentine natural gas supply”

    Quite untrue. The writer is clueless.

    Feb 01st, 2016 - 11:56 am - Link - Report abuse 0
  • Vestige

    Nice to have friendly neighbors.

    Some people dont have any.

    Feb 01st, 2016 - 12:41 pm - Link - Report abuse 0
  • Marti Llazo

    @3 Not likely so much a “friendly” gesture as a commercial and economic one. There are significant fees involved in the regasification of the LNG into CNG and transmission for Argentina. And probably some spillover from the joint ENAP/YPF petroleum exploration deal. Likewise the billions in US$ to be collected from the the reduction of utility subsidies in Argentina will go a long ways towards paying for the gas supply running through Chile.

    Maybe Chile will get Argentina hooked on this gas supply and then suddenly stop, just as Argentina did to Chile when they were contracted to supply natural gas and then abruptly broke their contracts.

    Feb 01st, 2016 - 01:25 pm - Link - Report abuse 0
  • golfcronie

    @4
    Argentina broke contracts are you sure, never would have thought it LOL
    Break contracts HaHaHaHa PMSL

    Feb 01st, 2016 - 01:45 pm - Link - Report abuse 0
  • yankeeboy

    When I lived in Argentina they said they'd run out of nat gas in a decade.
    and they have.
    Stealing YPF, throwing unaccountable $ at the company has done nothing except drive away most other exploration.

    They've already lost U$5B on the theft of YPF.
    Time to cut and sell it off

    Feb 01st, 2016 - 01:57 pm - Link - Report abuse 0
  • McCool

    @3 vestige

    “Some people don't have any”

    Such as Chile?

    Feb 01st, 2016 - 03:03 pm - Link - Report abuse 0
  • TomKey

    @6. I work in the oil industry in Argentina. They have plenty of gas an oil reserves, the problem is lack of investment, in drilling and infrastructure. In the past two years the big operators here, YPF and Pan American, have invested a lot of money in new technologies, bringing in expats, (such as myself),etc, to turn around the industry, it will take time, but it is turning in the right position.

    Feb 01st, 2016 - 04:38 pm - Link - Report abuse 0
  • Think

    (8) Mr. TomKey

    Nice to hear the simple truth from a foreign oilman in Argentina...
    Hope that my Country treats you well and that you enjoy yout time here in full...

    Yours truly...
    El Think
    Chubut

    Feb 01st, 2016 - 04:53 pm - Link - Report abuse 0
  • Captainsilver

    TomKey, getting paid promptly or at all might be problematic. Best of luck. Isnt it funny that countries that have everything are often basketcases whilst countries that have nothing like Singapore are highly successful?

    Feb 01st, 2016 - 05:15 pm - Link - Report abuse 0
  • yankeeboy

    It's in the State's interest to promote exploration and the infrastructure to support o/g. Unfortunately cfk screwed the pooch expropriating ypf.
    They also missed the boat.
    They'll never be able to develop enough for it to make economic sense now.

    Feb 01st, 2016 - 05:40 pm - Link - Report abuse 0
  • TomKey

    I would not place a bet on that. We have 9 rigs in Neuquen right now drilling to depth between 14,000 to 15,000 feet, in an average of 28 day, then completing these well in 14 days after drilled, at a total cost of US$11 million. Which is right in line with costs, and days of the same type of well in the US, this year the plan is 25 days, and US$ 9 million per well. YPF is close to the same, as well as the others here.

    Feb 01st, 2016 - 06:06 pm - Link - Report abuse 0
  • yankeeboy

    12. There are lots of people in the world that have already bet against YPF.

    Soon enough Argentina Gov't won't be able to pay the huge differential between market rate and the rate they're paying YPF.
    The way they're doing it now is lose/lose for the people and the country.

    Once Macri gets YPF in line most of the drilling will have to stop because they won't have the funds available.

    Feb 01st, 2016 - 07:26 pm - Link - Report abuse 0
  • Marti Llazo

    From what I understand those involved in domestic production within Argentina are getting about double the bbl price normally paid on the international market for the same quality/quantity, due to... once again... massive subsidies. Perhaps Mr Key can elaborate.

    Feb 01st, 2016 - 10:22 pm - Link - Report abuse 0
  • yankeeboy

    14. Yes that's what I was saying, they're also way over paying at the pumps. They're going to have to get both into alignment shortly and then the exploration will dry up.

    Feb 01st, 2016 - 11:55 pm - Link - Report abuse 0
  • Think

    From what I understand Engrish consumers are paying four times as much for gasoline as their Yankee cousins do......................., due to.....?
    Perhaps the Engrish Turnip at (14) can elaborate....

    Feb 02nd, 2016 - 12:25 am - Link - Report abuse 0
  • ManRod

    Vestige... its not a friendly act, its rather the maximum humilliation possible that Argentina could bear, confronting them with their incapacity: Argentina, rich of gas reserves being provided with gas from the “chilotes” with practically no gas reserves at all, but smartness and superior planning.

    Feb 02nd, 2016 - 07:46 am - Link - Report abuse 0
  • MuppetPaster

    Some curious use of English from TomKey:

    “but it is turning in the right position”
    “drilling to depth between”
    “I would not place a bet on that”

    Certainly not an Anglo ex-pat. The phrases used and comma placement point to a native Spanish speaker.

    Feb 02nd, 2016 - 10:37 am - Link - Report abuse 0
  • Think

    (17) Mr. Manrod

    It's, of course, not “a friendly act” from Chile, neither a “maximum humilliation” for Argentina...
    Not for this humble Patagonian, at least...

    It's just sound economy to buy cheaper gas from our Chilean neighbours utilizing the already existing gasoducts and infrastructure between our Countries....

    By it..., reviving our old, nearly defunct, binational energy integration plans..., saving us money and..., last but not least..., sending a loud and clear message to YPF, PAE and other actors in Argentina to get their act together, reduce their costs & margins and efectivize their production....
    Or else....................

    By the way...:
    “CHILOTES” are the inhabitants of the Chiloé island..., used as a slur adjective by some...
    I would recommend you be frugal with the use of that term...
    I personally wouldn't call a Negroe a Negroe if I was an Ex-Pat working among Negroes in Mississippi...

    Do you catch my drift...?

    Feb 02nd, 2016 - 10:37 am - Link - Report abuse 0
  • yankeeboy

    Cheaper? Than what?
    Argentina is paying a premium on top of LNG which is the most expenive way to get gas.

    Silly liar.

    Feb 02nd, 2016 - 01:03 pm - Link - Report abuse 0
  • TomKey

    @14 - For your information, I am 100% Texan, not one drop of Latino in my blood.

    Feb 02nd, 2016 - 03:28 pm - Link - Report abuse 0
  • Marti Llazo

    @17 @19 ManRod's writing reveals that he understands very well the significance of “chilote.”

    And since you (Tink) like to give lessons in the use of language, perhaps you should recognise that the use of “negroe” is considered archaic.

    Feb 02nd, 2016 - 03:41 pm - Link - Report abuse 0
  • Think

    The use of “Negroe” considered archaic...?
    Not in Klansville, Mississippi, USA it ain't...!

    Feb 02nd, 2016 - 08:19 pm - Link - Report abuse 0
  • TomKey

    Sorry, I meant that remark to MuppetPastor

    Feb 02nd, 2016 - 09:21 pm - Link - Report abuse 0
  • Marti Llazo

    @23 The archaic spelling is considered very 19th century, so in your case that would be completely appropriate and understandable.

    Feb 02nd, 2016 - 10:01 pm - Link - Report abuse 0
  • yankeeboy

    Can't anyone explain to me how buying LNG from Chile is “Cheaper” (then what would be a good place to start)

    Come on anyone... anyone....

    Feb 02nd, 2016 - 10:07 pm - Link - Report abuse 0
  • Marti Llazo

    @26 That's a good question, but we can speculate. The last time I looked at this, Argentina was getting their LNG (liquid natural gas) from Africa, at fairly high rates, and they had only two regasification points, and this (regasification and reception) was done on special ships that had limited processing and storage capacity. So when Argentina didn't accurately forecast their consumption related imports, either there would be a shortage of natural gas or more commonly, such an excess of incoming ships and low demand that there was a very expensive bottleneck. So Argentina could not conduct the regasification (remember that the gas ships are carrying dense liquified gas more than 100 deg C below zero) and hold the excess either as LNG or CNG in its limited storage at a rate that served the widely varying demand and emptied the incoming LNG (gas) ships . So what happened was those bottlenecked gas ships were being employed by Argentina as a sort of high-rent offshore storage farm.

    There is more to this of course but it's basically a problem of mismanagement and inability to plan and unsatisfactory infrastructure and all those Argentine things, and the most Argentine of all is that this generated high costs, because a gas ship kept waiting can easily run you around US$40,000 a day and I seem to recall that Kicillof got into one of his payment delay frenzies but the gas shippers don't take that kind of ship from Kicillof or anyone.

    I frankly don't know the Chilean reception and regasification infrastructure but from what I understand it has the ability to more economically purchase, process, store, and transmit the gas coming from cheaper sources in southwest Asia. Let's see if anybody can amplify that much because I have not been keeping up on it.

    Feb 03rd, 2016 - 02:28 am - Link - Report abuse 0
  • yankeeboy

    Cheaper than mismanagement and paying fines.
    Could be
    I bet that's not what it was saying tho...
    Is Killitoff in jail yet?

    It is shocking how much $ the Aerolineas has wasted.
    That guy is definitely going to jail
    Unless someone takes him out first
    They better pull his passport and put him under “protective” custody

    Feb 03rd, 2016 - 01:56 pm - Link - Report abuse 0
  • Marti Llazo

    Talked to somebody here today about the natural gas supply issues. He said that most of the imported gas is coming to Argentina from Qatar and Trinidad-Tobago and not so much from Nigeria. It's evidently being bought on a spot market basis and that means way higher prices. Kicillof apparently wouldn't allow negotiation for contracting a cheaper fixed supply scheme. And Argentina has of course a bad rep for actually paying for things, so that adds to the price (via commissions pricing) they pay for contracting gas ships (many of which are British-run, BTW). What is effectively an “unreliable buyer surcharge” seems to be the effect of some claims against Argentina in failing to pay for earlier energy deliveries. This makes us wonder how Chile is factoring in the associated payment risks.

    Gas from Bolivia is about 50 percent cheaper than getting spot-market shiploads and running the regasification within Argentina but that supply is maxed out due to limitations of the gas pipelines. Or at least that is what I gather here.

    Feb 03rd, 2016 - 03:30 pm - Link - Report abuse 0
  • yankeeboy

    They've been talking for decades about building more gas pipelines and extending the ones from Bolivia. The problem is they don't reach BA where they need the gas.

    This is all going to come to a full stop soon enough.
    The price of oil has put a damper on any new expoloration and the money just isn't there anymore.

    Feb 03rd, 2016 - 04:15 pm - Link - Report abuse 0
  • Think

    (21) Mr. TomKey, PAE, Neuquen.
    100% Texan huhhhhhhhh?
    As Tejano as Ted Cruz?
    ;-)))

    Feb 03rd, 2016 - 08:04 pm - Link - Report abuse 0
  • ilsen

    12 TomKey

    Welcome to the Board.

    You will find a lot of idiot posters here, with their own, rather specialist (ahem!) agendas, but also some really rather bright people too.
    (I see you are already getting some abuse)
    It is the the internet after all! However, this is quite a niche corner...
    Have fun, post what you like, and develop a rhino-like skin!
    (best to just ignore Think/Voice, waste of your time)
    Most people here have a deep interest in LatAm, for what-ever reason.
    I for one are glad to see some new interest.
    You are most welcome!

    As for @18 MuppetPaster (#)
    “Some curious use of English from TomKey:
    “but it is turning in the right position”
    “drilling to depth between”
    “I would not place a bet on that””

    Oh Do Fuck Off Dear! (DFOD).

    I am UK native English, and that sounds perfectly ok to me.
    I don't like bullies, so if you want to start a bunfight, don't pick on a newbie.

    I posit that you are a twat from the past, posting under a new screen-name because you are a coward.

    Feb 04th, 2016 - 01:47 am - Link - Report abuse 0
  • Voice

    32
    huh....what did I say...?
    nothing that's what...

    besides... I'd say...I wouldn't bet on that...
    and.....turning in the right direction....
    Now that sounds perfectly ok.......to me....
    ...but then again....I don't pretend to be a certain nationality....

    ps....ilsen you are the newbie to MuppetPaster...not a new name...been around longer than me...
    ...beware you are inviting trouble....trust me....

    Feb 04th, 2016 - 02:17 am - Link - Report abuse 0
  • TomKey

    @32, Thanks for the welcome. I have noticed that certain people have their agendas/opinions, as for think/voice, etc they are not even worth my time. My skin is thick so I can take whatever they can throw out. I am looking forward to enjoyable discussions. As to MuppetPastor, when you speak American english than we can talk.

    Feb 04th, 2016 - 11:58 am - Link - Report abuse 0
  • Voice

    Welcome Tomkey...that's the spirit...now you are turning in the right position...;-)

    Feb 04th, 2016 - 12:04 pm - Link - Report abuse 0
  • Think

    (34) Mr. TomKey

    You say...:
    “Think/voice, etc they are not even worth my time.”

    I say...:
    Dear Texan guest...
    What did offend you the most?
    When I said to you at (9) that it was...: “Nice to hear the simple truth from a foreign oilman in Argentina...”?
    Or...
    When I said to you at (9) that I...: “ Hope that my Country treats you well and that you enjoy your time here in full...”?

    Well.... My fault after all...
    We all know what happened in Tejas when the Latinos welcomed the Anglos...

    Yours truly...
    El Think
    Chubut

    Feb 04th, 2016 - 05:02 pm - Link - Report abuse 0
  • Voice

    36 Mr. Think

    .....What....?
    I'm sure I read it as.....“think/Voice, etc they are not even worth my time.”
     
                                                               ;-))))))))))

    Feb 04th, 2016 - 06:12 pm - Link - Report abuse 0
  • Think

    (37) Mr. Voice

    “ Think/Voice, etc ” then!
    Happy now?
    :-)))

    Feb 04th, 2016 - 07:24 pm - Link - Report abuse 0
  • ilsen

    hahaha!
    Throw a troll a biscuit, and they can't help but respond!

    re: weak little Voice; “...beware you are inviting trouble....trust me....”

    lol! really? hahaaha!
    1: I wouldn't trust you as far as my cat can spit, and she is 16...
    2: If you feel that threatened by me, you really need to speak to your therapist.
    In therapy? In Argentina, it's the norm...
    http://edition.cnn.com/2013/04/28/health/argentina-psychology-therapists/

    Feb 05th, 2016 - 03:16 am - Link - Report abuse 0
  • Voice

    39
    huh....?
    Let me just turn this stick around so that you can grab hold of the other end of it...
    I remember the last time a poster A_Voice had a run-in with a MuppetPaster...comments removed, login copied and eventually blocked and lost...
    ...that's all...

    Feb 05th, 2016 - 12:22 pm - Link - Report abuse 0
  • MuppetPaster

    40. Voice
    Let bygones be bygones.
    I don't undertake the task of applying vigilante justice lightly. A_Voice had overstepped and needed to be put back in the sock drawer. The outcome was good. Voice is more balanced and more reasonable than his predecessor.

    I am sure you will agree.

    39. ilsen
    It is not an easy job but someone has to do it. I have purged many sock-puppets (A_Voice, several incarnations of TTT, Guss and others) for a variety of misdemeanours and sometimes just for fun.

    Now, a vigilante must be vigilant and I detected something odd about TomKey's use of English. I have never heard anyone say “turning in the right position” to express that something is now headed in the right direction.
    As for the punctuation, it is, hard, to, know ,where, to start.

    Then @24 he says “I meant that remark to MuppetPastor”.
    That doesn't sound clumsy to you?
    “That remark was meant for...” maybe, or “I meant that remark for...”. Using the wrong preposition - a common error for a non-native speaker.

    I will ignore your invitation for “DFOD” on this position. ;/

    TomKeys
    100% Texan and no Latino blood. Is that possible?

    Feb 05th, 2016 - 11:18 pm - Link - Report abuse 0
  • Marti Llazo

    @41 “100% Texan and no Latino blood. Is that possible?”

    Of course. Only someone unfamiliar with Texas and Texans would doubt that. Just like “ 100% Argentine and not one drop of intellectual honesty.”

    Feb 06th, 2016 - 01:39 am - Link - Report abuse 0
  • ilsen

    @41 MuppetPaster

    I retract my “DFOD” on this position. Apologies offered.
    :-)
    Thank you for your input on the “troll”, personally, I can't be bothered to take it any further, but I do like to throw them a biscuit now and then...

    I did like this;
    “TomKeys
    100% Texan and no Latino blood. Is that possible?”
    um, yeah...
    and would like to add;
    “There are three federally recognized Indian tribes in Texas today.
    Texas tribes today. Here are the addresses of Texas' Indian reservations:
    1 Alabama-Coushatta Tribe of Texas:
    Rt 3 Box 640
    Livingston, TX 77351
    2 Kickapoo Traditional Tribe of Texas:
    HC1 Box 9700
    Eagle Pass, TX 78852
    3 Ysleta del Sur Pueblo:
    PO Box 17579, Ysleta Stn
    El Paso, TX

    Of course, I am loving the ”100% Texan and no Latino blood. Is that possible?”
    hahahahahahhahahahhaha!

    Feb 06th, 2016 - 01:42 am - Link - Report abuse 0
  • yankeeboy

    I think its funny that one person's collection of personas all seem to live in far away places where nobody else would live if they had the choice.

    Feb 06th, 2016 - 02:18 pm - Link - Report abuse 0
  • Voice

    yeah I know what you mean...
    Like DC..it's safer than 3% of the cities in the US...
    http://www.neighborhoodscout.com/dc/washington/crime/

    Feb 06th, 2016 - 02:53 pm - Link - Report abuse 0
  • yankeeboy

    Like any major city anywhere in the world there's places you go and places you don't.
    In the USA most of the cities are safe unless you're in a poor/minority area and why would anyone go there?

    What i was trying to say in my post is that the personas all have the same “background” so they're easy to spot. Its not the brightest bulb on the tree.
    There was a time when they all had Scandanavian backgrounds until someone pointed it out and made it look like a fool. Then they all disappeared and were morphed into...
    and I think its funny

    Feb 07th, 2016 - 12:55 pm - Link - Report abuse 0
  • Voice

    Everywhere is a far away place to someone...it's relative...
    What you mean is far away to you...
    Where you are is not the centre of the universe....
    You will never be able to convince anyone that prefers rural that a city is better or vice versa...
    Cities equal more crime, less privacy, smaller properties and smaller yards...traffic congestion etc...
    It's all about preference or necessity or value for money...
    I don't need to be in a city....

    Feb 07th, 2016 - 05:40 pm - Link - Report abuse 0
  • yankeeboy

    Again, I'm not trying to say that at all I like the country and the city.

    What I am saying, and you're trying so hard to twist it around is that there are personas that live in extremely remote areas, hilly, chilly, far away from civilization, and they seem to double down when questioned and pick even hillier, chillier, remoter places when a new one pops up.
    That's all
    Just pointing out the obvious.
    Doncha think?

    Feb 08th, 2016 - 02:01 pm - Link - Report abuse 0
  • ilsen

    (DFOD). yawn.............................

    Feb 09th, 2016 - 02:48 am - Link - Report abuse 0

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