Argentina’s move away from associated gas will weigh on its overall gas output in 2017.
However, increasing investment in Argentina’s Neuquén Basin, which contains the Vaca Muerta shale play, is expected to result in production recovering in 2018. The country’s gross gas production amounted to 18.4 bcm in the first five months of 2017, marginally lower than the 18.5 bcm produced during the same period in 2016. The Neuquén is the primary source of non-associated gas in Argentina while the Austral, San Jorge Gulf and Northwest acreages mainly produce associated gas. Total gross gas production from the three acreages fell by 3.8% year on year in the first five months of 2017, to 7.5 bcm. GGA forecasts that Argentina’s marketed gas output will decline by 1% on an annual basis in 2017, to 41.9 bcm.