Page 12 - GLNG Week 08 2023

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Argentina’s National Congress

delays debate of LNG bill

ARGENTINA ARGENTINA’S National Congress is looking definitely include a commitment to keep tax
to start debating a draft law designed to encour- rates stable and may include 30-year export
Legislators had said age investment in natural gas and LNG projects authorisations, he said.
previously that they next month, a source in the South American The draft law is seen as a vital step toward
hoped to discuss country’s Energy Secretariat told Reuters last supporting large-scale development of the Vaca
the bill, which week. Muerta shale basin, which contains unconven-
aims to encourage Legislators had said previously that they tional gas reserves large enough to serve the
construction of new hoped to discuss the bill, which aims to encour- export market as well as Argentina’s domestic gas
gas transportation age construction of new gas transportation consumers. It aims to foster the construction of
infrastructure and LNG infrastructure and LNG production and export pipelines linking the basin to the country’s pop-
production and export facilities, in January or February of this year – ulation centres and coastal ports, as well as gas
facilities, in January or that is, during a special session of the National liquefaction plants and terminals.
February of this year. Congress. But according to Reuters’ source, they There are several proposed initiatives that
were not able to do so in light of certain changes hinge on the passage of the law. Argentina’s
made to the draft legislation. national oil company (NOC) YPF has said it
As such, debate is now likely to continue in intends to establish a joint venture with its Malay-
March, during the next regular session of the sian counterpart Petronas for the construction of
National Congress, the source said. a pipeline and LNG plant for Vaca Muerta gas at
He did not detail the exact nature of the a cost of $10bn. Meanwhile, US-based Excelerate
changes made to the bill. However, he did say Energy has teamed up with Transportadora de
that the draft law included provisions that Gas del Sur (TGS) to build its own LNG plant,
offered tax breaks to investors that committed to which could come online as soon as 2025.
LNG projects with specific annual investment Vaca Muerta is one of the largest shale for-
targets and minimum investment levels. mations in the world. It is around the size of Bel-
Additionally, he noted that it would offer gium and contains about 308 trillion cubic feet
investors certain guarantees from the govern- (8.722 trillion cubic metres) of shale gas, accord-
ment in order to reduce the political risk of ing to estimates from the US Energy Information
gas and LNG projects. These guarantees will Administration (EIA). ™

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