Argentina Resumes Natural Gas Exports to Brazil After 6 Years

Written by Valdemar Medeiros

Published on 17/02/2021 at 11:32

Updated on 17/02/2021 at 11:36

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After 6 Years Without Exporting Gas to the Brazilian Market, Argentina Returns

Argentina has already exported its first shipment of liquefied natural gas (LNG) and could have a surplus of 20 million cubic meters per day (m3/day) at certain times of the year [for export]. The easiest destination is to come to Brazil.

Brazil-Argentina Relations

The Argentine government stated on Sunday (14) that it has resumed activities to export natural gas to the Brazilian market.

Greater integration between Brazil and Argentina in the natural gas market may be viable in the medium term, allowing the neighboring country to export the input to Brazil, particularly in the summer when Argentine gas consumption decreases but energy demand in Brazil increases.

ARTICLE CONTINUES BELOW

Government Bets on New Gas Law

The New Gas Law consolidates the necessary advancements for the formation of an open, dynamic, and competitive natural gas market, promoting conditions for price reduction and thereby contributing to the country’s economic recovery.

The competition generated will promote the recovery of the national industry’s competitiveness, especially in the segments of pulp, fertilizers, petrochemicals, steel, glass, and ceramics, in addition to relevant impacts on agribusiness, generating more jobs and income for Brazilians.

According to the Argentine government, each day of plant operation can result in an influx of US$ 500,000 for the neighboring country. However, the export is provisional. Argentina is waiting for the process to be consolidated after winter, when the “Gas Plan” will ensure the country’s self-sufficiency in gas usage. Then, the country expects to carry out steady (uninterrupted) exports to Brazil, Chile, and Uruguay.

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