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published its World Energy Outlook 2020 and its Latin America: Gas and refineries
Global Gas Security Review last week, with LNG Argentina’s natural gas production may
featuring significantly in both. have fallen in both July and August, but the
The IEA noted that LNG remains central administration of President Alberto Fer-
to ensuring the security of global gas supplies, nandez unveiled a new plan to stimulate the
adding that the super-chilled fuel played a major gas sector last week. At a ceremony marking
role in the market’s adjustment after COVID-19 the launch of the plan, Fernandez stated that
made gas demand crash. Monthly global exports the national oil company (NOC) YPF was
of LNG fell by 17% between January and July slated to invest some $1.8bn in gas produc-
2020, the agency said, discussing the role the tion over the next three years.
industry is playing in balancing gas markets. Speaking at the same event, Energy Min-
LNG contracting activity collapsed from a high ister Dario Martinez said that Buenos Aires
of 95bn cubic metres in 2018 to about 35 bcm in was setting up a four-year tender scheme
the first nine months of 2020. that would allow producers to offer gas to
“Since the IEA started tracking flexibility in the market at prices of up to $3.7 per mil-
LNG markets in the first edition of the Global lion Btu. This scheme is designed to secure
Gas Security Review five years ago, we have seen more than 70mn cubic metres per day of
a notable improvement across a range of LNG gas for Argentina’s domestic market, while
market flexibility metrics. This is improving ensuring that domestic producers are paid
security of supply and was critical in enabling the an adequate price, he commented.
market to adjust to the historic demand shock In related news, the Argentinian unit of the
witnessed in the first half of 2020,” the IEA’s exec- Brazilian oil company Raizen has announced
utive director, Fatih Birol, said in a statement. plans to invest $715mn over the next three years
In the World Energy Outlook, meanwhile, to modernise and expand its Dock Sud refinery
the agency noted that a record year of approvals in Avellanada. The project will boost the plant’s
for new liquefaction projects in 2019 had now throughput capacity from the current level of
been followed by a year with no new projects 110,000 barrels per day (bpd) and create thou-
green-lit – and none likely by the end of 2020. sands of new jobs, the company says.
Further challenges lie ahead for the LNG Also in the downstream sector, Petroperu has
industry, the IEA warned, with one-third of launched bidding for service contracts as part of
active contracts due to expire over the next five the long-delayed modernisation of the Talara
years. Over the same period, global liquefaction refinery. The state-owned company is looking to
capacity is projected to increase by 20% from award 10-year operational management service
projects that are currently under development, contracts for work on the plant’s auxiliary units.
according to the agency. Further north, Mexican officials say that
“These two factors will strongly impact the state-owned Pemex has wrapped up work on the
structure of LNG supply, and create new oppor- first phase of the Dos Bocas oil refinery, which
tunities for buyers and challenges for marketers is now under construction in Tabasco State.
in a context of demand uncertainty,” the IEA The project was 24% complete as of October 18,
said. according to Oil & Gas Journal.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the global LNG sector then please click here for the Latin American oil and gas sector then please click
NewsBase’s GLNG Monitor. here for NewsBase’s LatAmOil Monitor.

P20 www. NEWSBASE .com Week 42 22•October•2020