MercoPress. South Atlantic News Agency
Argentina wants energy firms to invest US$ 5 billion to boost gas production
The plan aims to substitute natural gas production for imports, savings some US$ 5.6 billion, the government said Argentina wants energy firms to invest some US$ 5 billion to boost hydrocarbon production and generate jobs in the country's prized Vaca Muerta shale play, as well as to bring in much-needed foreign currency.
The plan unveiled on Thursday aims to substitute natural gas production for imports, savings some US$ 5.6 billion, the government said, while adding new jobs and reversing the months-long decline in output at Vaca Muerta.
The government expects the plan to help increase tax collection by some US$ 2.5 billion and a bump up its fiscal balance.
Argentina, which is bracing for a 12% economic contraction this year, has struggled to capitalize on Vaca Muerta, one of world’s largest reserves of shale oil and gas. In the last year, many international companies slowed investments, concerned about the lack of a clear plan for the energy sector and worsening economic crisis.
The stimulus plan means “working to guarantee the gas that Argentina needs to live and to produce, and stop the thinking that we have to import gas,” Argentine President Alberto Fernández said at an event at Vaca Muerta.
The government has previously indicated that producers will need to commit to sustaining or increasing production at 2020 levels, and will be allowed to increase exports outside of the winter period when domestic gas demand is lower.
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Read all commentsDear El Diego
Oct 16th, 2020 - 04:57 pm +4You are truly inspirational!
Now is the time for taking action to overturn the societal injustice!
My best advice is to first infiltrate the universities and form clandestine study groups to debate how to use the subversive methods of Milton Friedman to radically change the Peronist economic structure of Argentina's economy.
Your group should embrace new classical macroeconomics heavily based on the concept of rational expectations.
This would completely overturn the current economic imbalance of your once great land — that a century ago was considered one of the five wealthiest countries in the world!
Comrade Milton Friedman teachings are key to achieving national wealth and lifting the poor out of poverty.
¡Viva Milton Friedman!
Yeah 5 Billion Dollars for a Country that is Notorious for Not Paying Back Loans, Good Luck with that one and also considering that Most Finance is moving away from Carbon based Fuel and over to Renewable Energy they Might as well Close down the Vaca Muerta Fields.
Oct 16th, 2020 - 08:59 am +3Mr Dirk is a bit extremist, although correct in some aspects, renewable is good but natural gas and fracking for oil should increase if the proper tax incentives are in palce and labor goes aloing as it has so far..
Oct 16th, 2020 - 12:41 pm +3Bur Mr Diego must be living in someother country, We are a rich country but if we are not stupid we come close, we dont honour our debts, we are a totally mismanaged country, there is the problem Diego !!! and pls note that what we can manage we simply STEAL and CHEAT....
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