Argentina and Chile in gas swap

BUENOS AIRES, October 31, 2017 – Argentina and Chile have initiated the first energy exchange in their history, Chilean NOC Enap announced on Monday.

To cover Chile’s demand during the maintenance of its Quintero LNG terminal this weekend, Energía Argentina exported 2 mcm (70.6 mcf) of natural gas through the GasAndes pipeline to its neighbour, a volume which Enap will return within 48 hours.

The short-term operation will serve as a test for larger swaps between the two countries in the future.

“This swap marks a milestone in the exchange between both countries, and opens the possibility of new agreements that strengthen the relationship for mutual benefit between both nations,” said Enap managing director Marcelo Tokman.

On Friday, Argentina’s Ministry of Energy and Mining officially sanctioned the export of emergency gas supplies to Chile through the publication of a resolution in its official gazette. Under the resolution, Energía Argentina may export up to 3.5 mcm (124 mcf) of gas per day to Enap, so long as an equivalent volume is reimported within 30 days of initial delivery.

Argentina supplied Chile with gas until 2004, when domestic demand became a priority under the Kirchner administration. In recent years, Chile has been exporting regasified supplies to Argentina to help the country cover mounting demand during the winter months.

With the expected ramp-up of shale and tight gas production from areas such as Vaca Muerta, Argentina aims to once again become a net energy exporter within the next few years.

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