Report: Argentina to stop LNG imports in six years

Argentina is reportedly planning to stop LNG imports in the following years as the domestic gas production rises, according to the country’s president Mauricio Macri.

Platts reports Macri saying at an expanded port terminal opening, as saying that the expensive LNG imports could be completely phased out in a period of five to six years.

Argentinian energy minister, Juan Jose Aranguren earlier said that discontinuing LNG imports would bring savings to the country, as domestic gas is cheaper than imported liquefied natural gas. In addition, Argentina would save US$100,000/day in rental fees for two floating regasification units, according to the report.

Currently, LNG imports to Argentina cover a third of the country’s gas demand reaching 130-180 million cubic meters a day.

In 2016, Argentina will import 85 to 90 cargoes priced at $6.5 per mmBtu, which is above the average $5.2 per mmBtu price of the domestically produced gas, or $3 per mmBtu for gas imported via pipeline from Bolivia, the report said.

The government increased incentive price from new developments to $7.5 per mmBtu and the production has jumped 6.6 percent in the first four months of 2016 reaching an average of 121.2 million cubic meters per day.

LNG World News Staff