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Report: Argentine LNG could serve Asian demand
PROJECTS & COMPANIES
A new report has found that Argentina’s growing gas output, coupled with competitive lique ed natural gas (LNG) costs, could make the Latin American country an emerging source of supply to Asia during periods of peak demand. Consul- tancy Wood Mackenzie said in its new research that global LNG demand was increasingly show- ing seasonality. It added that Argentina’s peak LNG production potential coincided with strong demand from Asian utilities.
is comes as shale gas production is rising in Argentina thanks to the emergence of the Vaca Muerta play – including associated production from oil drilling. With large-scale LNG produc- tion expected to begin in the country in 2024, Wood Mackenzie anticipates volumes reaching 6m tonnes per year (t/y) that year, and rising to 10m t/y by 2030.
According to the consultancy, it would also be cheaper to ship LNG to Asia from Argentine export terminals than it would from the US Gulf Coast, with tankers being able to avoid conges- tion in the Panama Canal.
“Vaca Muerta’s gas production has dramati- cally changed the outlook for Argentinian gas. It is already bringing cheap gas for local indus- try and also supporting the construction of new major gas pipelines,” Wood Mackenzie’s prin- cipal analyst for Latin America gas and LNG, Mauro Chavez Rodriguez, said.
“Nevertheless, not even the domestic demand and exports to neighbouring countries such as Chile and Brazil are enough for Vaca Muerta’s gas potential. LNG exports could be a solution that enables Vaca Muerta’s production to con- tinue the growth story,” he added.
Rodriguez noted that some Asian players were already active in the Vaca Muerta, includ- ing Petronas and China National O shore Oil Corp. (CNOOC) subsidiary Pan American Energy.
“We see further opportunities for Asian play- ers looking for foreign investment, not only in upstream but also for major midstream infra- structure, such as gas processing plants, pipe- lines, have petrochemicals, and LNG export plants,” he said.
India struggles to insure SPR because of Iran sanctions
SOUTH ASIA
POLICY
STATE-RUN Indian Strategic Petroleum Reserves Ltd (ISPRL) is reportedly struggling to secure insurance cover for around 5m tonnes (36.65m barrels) of stored crude oil.
The Hindustan Times quoted unnamed sources on June 15 as saying that because some of the crude comes from Iran, which is subject to US sanctions, international reinsurers have refused to provide cover. While local insurers
provide initial cover for the strategic petroleum reserve (SPR), they then seek to cover their risk with global reinsurers – most of which are based in the US or Europe.
e US re-imposed all sanctions on Iran in November a er it withdrew it withdrew from the 2015 nuclear deal with Iran. While it initially granted six-month waivers to eight oil importing countries including India, these have not been
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w w w . N E W S B A S E . c o m Week 24 19•June•2019
