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Argentina gas earmarked for domestic consumption, not export, says minister

Wednesday, June 8th 2011 - 16:41 UTC
Full article 5 comments
Planning Minister Julio De Vido is ‘energy czar’ and a close advisor of President Cristina Fernandez Planning Minister Julio De Vido is ‘energy czar’ and a close advisor of President Cristina Fernandez

Argentina won't become a natural gas exporter under the current government even if potentially massive deposits of unconventional gas turn out to more than enough to supply the domestic market, announced Planning minister Julio De Vido.

“Even if the gas reserves are found to be very large, they will be earmarked for local consumption, especially by industry; it is not the policy of the administration of President Cristina Fernandez to export gas” insisted De Vido.

Argentina is thought to hold significant deposits of shale gas that companies have only recently started to explore.

In a report published earlier this year, the US Energy Information Administration said that Argentina could be home to the largest technically recoverable shale gas resources in South America, with an estimated 774 trillion cubic feet.

Last December, Argentina's largest oil and gas producer, YPF SA (YPF) said that it had found an estimated 4.5 trillion cubic feet of unconventional gas in the southern province of Neuquen.

France's Total SA (TOT), Exxon Mobil Corp. (XOM) and Apache Corp. (APA) are also exploring for shale gas in Neuquen Province.

Argentina used to be a major supplier of natural gas to Chile until 2004, when it essentially cut shipments to its neighbor to ensure sufficient supplies at home.

Argentina's proven natural gas reserves fell 51% to 13.3 trillion cubic feet between 2000 and 2009 because of rapid economic growth and government price caps that have spurred demand while providing little incentive to search for more gas. As a result, Argentina has become a net importer of gas.

 

Categories: Energy & Oil, Argentina.

Top Comments

Disclaimer & comment rules
  • geo

    You all the Natural Gas consumers & producers of the World,

    You must know natural gas consumption produces Nitrogene di Oxide
    which is more dangerous than Carbon di Oxide ....

    Excessive Nitrogene di Oxide in the air can induce deterioration of air
    rhythm and ........ eventually agriculture sources .

    Jun 08th, 2011 - 08:06 pm 0
  • yul

    Proved Natural Gas Reserves /2010

    trillion cubic feet

    Argentina....12,2
    Peru...12,5
    Bolivia....9,9
    Brazil....14,7
    Venezuela.....192,7

    Jun 08th, 2011 - 08:51 pm 0
  • Sergio Vega

    By the way, thought nobody will sign a contract with any company in Argentina because they can´t acomplish with their word, just because the Argentine Gvt. won´t allow that......we have had the experience some years ago with a big investiment in pipelines, domestic pipe nets and some methanol plants and a lot of thermal power plants after a sell contracts between Argentines privates gas producers and Chilean gas distribuitors, electricity generatos companies and methanol producers, back uped by a both sides signed Gvt's Treats, erased by our neighbours Gvt leaving all of them with their pipes empties....So reliables they are !!!

    Jun 08th, 2011 - 10:03 pm 0
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