Markets & Forecasts

Argentina’s perilous path to gas riches

Argentina’s efforts to become self-sufficient in gas and boost its exports of LNG and pipeline gas will be thoroughly tested as the country’s economy deteriorates Argentina’s efforts to become self-sufficient in gas and boost its exports of LNG and pipeline gas will be thoroughly tested as the country’s economy deteriorates.

By Abhishek Kumar 12 April 2019 Americas / Exploration & Production 0 34129

The pro-business stance of the administration of President Mauricio Macri has attracted investment in Argentina’s oil and gas industry. (Wintershall)

Argentina's gas sector is caught between a rock and a hard place. The country wants to stop gas and LNG imports by boosting gas production, but the government cannot afford to pay high-enough subsidies to upstream players because of ongoing economic problems. The situation poses serious questions about whether Argentina can fulfil its ambition of becoming a major LNG and pipeline gas exporter, a development that will be contingent on the country becoming self-sufficient in gas.

The pro-business stance of the administration of President Mauricio Macri...