Exploration & Production

Argentina’s first Chilean exports to give modest rewards

The generous production subsidies paid out by Buenos Aires may wipe out Argentina’s profits from its initial gas exports to Chile The generous production subsidies paid out by Buenos Aires may wipe out Argentina’s profits from its initial gas exports to Chile.
By Chris Noon 31 July 2018 0 31949
Work on the GasAndes Pipeline in the Argentine Andes Work on the GasAndes Pipeline in the Argentine Andes. (Ozzie’s Pipeline Padder)

The government of Argentina has heralded the resumption of the country’s gas exports to Chile in Q4 2018 as a historic moment. Buenos Aires deserves plaudits for the achievement, because it has been 11 years since Argentina last exported gas to its Southern Cone neighbour.  

However, the export regime is unlikely to generate significant revenues for the Argentine state in its early stages, according to Interfax Natural Gas Daily calculations from publicly available data and price estimates. 

In fact, Buenos Aires will only just...