Argentina wants energy firms to invest some $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 Oct. 15 aims to substitute natural gas production for imports, savings some $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 $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.
Recommended Reading
Venture Global, Grain LNG Ink Deal to Provide LNG to UK
2024-02-05 - Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum of LNG storage and regasification capacity at the Isle of Grain LNG terminal.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
Total CEO: US LNG Shaky, Global Projects Brought into Spotlight
2024-02-21 - U.S. President Joe Biden’s decision to pause approvals for new U.S. LNG projects benefits similar projects around the world and casts doubt around U.S. supply, TotalEnergies’ Pouyanné told analysts during the company’s quarterly webcast.
ARC Resources Adds Ex-Chevron Gas Chief to Board, Tallies Divestments
2024-02-11 - Montney Shale producer ARC Resources aims to sign up to 25% of its 1.38 Bcf/d of gas output to long-term LNG contracts for higher-priced sales overseas.
ConocoPhillips CEO Ryan Lance Calls LNG Pause ‘Shortsighted’
2024-02-14 - ConocoPhillips chairman and CEO Ryan Lance called U.S. President Joe Biden’s recent decision to pause new applications for the export of American LNG “shortsighted in the short-term.”