Argentina announces reform, investments
BUENOS AIRES, December 16, 2016 – Rising domestic demand will require Argentina to invest USD 20 billion per year in its unconventional gas resources, president of the Argentine Oil and Gas Institute (IAPG) Ernesto López Anadon said this week.
Anadon stated this level of investment would be necessary for “a prolonged period.” With 5 million new users predicted, demand is expected to increase from 135 mcm (4.77 bcf) per day to 230 mcm (8.12 bcf) per day over two decades.
Upgrades and development to pipeline networks to accommodate such growth will also require an additional USD 30 billion per year.
Energy and Mines Minister Juan José Aranguren also laid out plans for the country’s hydrocarbons industry, announcing a government plan to gradually match the Argentinian per-barrel price with international prices. The move is aimed at correcting a difference which has typically made Argentinian exports uncompetitive.
Anadon stated that he supports such a move as “necessary.”
Speaking at the annual National Oil and Gas Day in Buenos Aires, which celebrates the discovery of oil in Argentina, Aranguren stated that immediate plans would set floor prices for Argentinian oil. These will be USD 55 and USD 47 per barrel for medium API density Medanito crude and Escalante benchmark, respectively.
Photo courtesy of Wintershall