Page 10 - GLNG Week 49 2022
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GLNG AMERICAS GLNG
Massa says Argentina’s
government is drawing up
new LNG export bill
POLICY ARGENTINA’S Economy Minister Sergio the national oil company (NOC) YPF. Poten-
Massa said on November 24 that the govern- tial investors have been particularly keen on
ment of President Alberto Fernandez was draw- Vaca Muerta, one of the world’s largest uncon-
ing up new legislation with the aim of fostering ventional hydrocarbon basins, which contains
the establishment of natural gas export infra- around 308 trillion cubic feet (8.722 trillion
structure and terminals. cubic metres) of shale gas and 16bn barrels of
legislation with the aim of fostering the estab- shale oil, according to the US Energy Informa-
lishment of natural gas export infrastructure and tion Administration (EIA). However, the coun-
terminals. try will not have enough midstream capacity to
Speaking to a group of business leaders in move large volumes of gas from the Vaca Muerta
Buenos Aires, Massa stated that the draft bill basin to the coast for several more years.
would focus on LNG exports. Fernandez and Additionally, it has yet to attract the billions
his team will send the legislation to the National of dollars it will need to build liquefaction plants
Congress within the next few months, he said. capable of turning its gas into LNG and termi-
The economy minister did not say whether nals to load the LNG on tankers for export. These
the president had set any specific deadlines for facilities too will take several years to build.
this initiative. He did report, though, that Fer- IOCs and YPF have thus far hesitated to com-
nandez intended to enact a series of decrees to mit to these time- and capital-intensive projects,
complement the draft legislation. Additionally, citing concerns about Argentina’s ongoing finan-
Reuters quoted him as saying that he hoped leg- cial crisis and the market controls and regula-
islators would discuss the LNG bill during their tions imposed by the Fernandez administration.
upcoming extended or extraordinary sessions. They have also indicated, though, that the shift
Massa indicated that Buenos Aires was in global energy markets has made LNG invest-
optimistic about the draft legislation’s poten- ments more attractive, meaning that they might
tial to attract many billions of dollars’ worth of be more willing to invest if Buenos Aires offered
investment into gas production, transport and sufficient tax and exchange breaks.
export facilities, especially in light of the growing Fernandez said in September during a visit
demand for new supply sources of gas in Europe to Houston that his government hoped to put
and other markets. He did not reveal any details in place a law that offered “certainties to invest-
of the government’s plan, though. ments destined for energy production and
Argentina’s hydrocarbon potential has fundamentally to the construction of gas lique-
drawn no small amount of attention from inter- faction plants.”
national oil companies (IOCs), as well as from
P10 www. NEWSBASE .com Week 49 08•December•2022
