Petrochemical

Argentina needs $10 billion to advance LNG plan

Seetao 2022-05-07 14:43
  • Argentine LNG exports will play an important role in the transition period of the energy transition
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As global demand for clean energy tightens, Argentina's economy minister Martin Guzman said the country was trying to attract about $10 billion in private investment to help the country start liquefied natural gas (LNG) by 2027. )exit. Argentina's energy deficit is severe and costly.

Argentina is home to the world's second-largest shale gas reserve, the Vaca Muerta formation, but has become a major importer of LNG to meet winter demand as domestic production and pipeline capacity lag. Argentina needs liquefaction plants to convert its gas into LNG, and Argentina's exports could reach $15 billion by 2027, an ambitious goal as the country ramps up domestic production, Guzman told energy industry executives. Build a new large gas pipeline.

"We are working with some countries and companies to make sure that if Argentina has LNG capacity, there will be demand," he said in a speech. Guzman said the government was working to bring more certainty to the industry and to ease Foreign exchange access. "There is a need to boost the flow of foreign direct investment into this sector in Argentina," he said. Olue Ajayi, senior LNG analyst at Refinitiv, said Argentina would be able to cut import bills by boosting Vaca Muerta production despite LNG prices and supply dynamics in 2027 Possibly more challenging than the current tight market. “In the medium term, if they can increase Vaca Muerta capacity and encourage investment upstream, they can start to ramp up LNG exports,” he said. “But by then it may be too late because of other projects elsewhere. It has been approved to meet market demand." Editor / Xu Shengpeng


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