Argentina and Brazil are focusing on boosting gas production to reduce their reliance on imported gas and LNG.
Gas production in Argentina is driven by rising output from the country’s Neuquén basin, which contains shale plays including Vaca Muerta. Total gross gas production from the Neuquén and Cuyana basins increased by 6% year on year in the first nine months of 2016, to 19.5 bcm – almost 58% of Argentina’s gas output. GGA forecasts that the combined production of the two basins will rise by 5.6% on an annual basis in 2016, to 26.2 bcm. Consequently, Argentina’s marketed gas output is expected to increase by 6.2% this year on annual basis, to 42.7 bcm, and to rise by 4% next year.