Despite the election campaign, one of the agendas maintained by the Minister of Economy, Sergio Massa, is the energetic. Negotiations are currently taking place in the Finance Palace to advance the infrastructure work necessary for gas supply Dead cow reach northern Argentina. Aside from that, They are debating with Bolivia the price of using the existing infrastructure to also reach São Paulo in Brazil. The UP presidential candidate’s last official campaign act will be the inauguration of the pipeline to expand crude oil exports to Chile.
Dead cow Brazil
Argentina will end 2023 with a balanced energy budget, after 2022 with a historic deficit. However, e.g 2024 In economics they see a scenario of Energy import savings of $7,000 million which will once again be important for the country Energy surplus which hasn’t happened since 2010.
In order to achieve these numbers, they are planning, on the one hand, to switch to supplying energy to the domestic market. With this in mind, the government floated the tender for the a month ago Reversal of the Northern Gas Channel to bring the energy of Vaca Muerta to the provinces of northern Argentina. Although it has not yet been awarded, the state-owned company Energía Argentina (formerly Enarsa) has pushed ahead with the purchase of pipes from Tenaris as part of the first stage of the NK gas pipeline.
For this reason, Javier Martinez Alvarez, President of Tenaris, revealed: “We received the order to provide the pipes for the reversal and within 24 hours the first sheets were already rolled.” It is an extraordinary task with Enarsa and Industria, we have to run again because we have to arrive before winter because of the risk of poor supplies from Bolivia. But we’ve done it before, with the first section of the gas pipeline, so it will be a challenge.”
Massa’s aim is to achieve success with this work May 22, 2024. The urgency is that although Argentina has a contract with Bolivia until 2026, the neighboring country cannot guarantee a fixed supply and supplies for next winter are at risk. Even when the work is completed, “northern Argentina will live on Vaca Muerta,” says Economía. And the treaty with Bolivia ends after almost 20 years.
Anyway, further negotiations are currently underway with Bolivia: how Use the existing infrastructure between Bolivia and Brazil so that Argentina can do it Bring the gas from Vaca Muerta to the San Pablo industry. “Bolivia is ready to sign for 10 years, but they want a very expensive contract.” To offset the decline, we hope negotiations move forward with cheaper prices,” said a senior economic source.
Actually, Daniel Ridelener CEO of TGN, said at the AOG 2023 trade fair that “all the infrastructure to reach São Paulo” is in place via the TBG (Brazilian Bolivia-Brazil Gas Pipeline (TBG)). However, he revealed that there is a sensitive issue: “The tripartite negotiations between Argentina, Bolivia and Brazil are the most sensitive issue because it concerns how the three actors will reach an agreement.”
Aside from that, The tender for the second section of the Néstor Kirchner gas pipeline will be launched in the coming weeks which will be 467 kilometers long, from Salliqueló to San Jerónimo in Santa Fe. In September there will be a call to the pipe utilities, while in October the tender for the construction of this section will take place.
Vaca Muerta Chile
To give importance to the energy sector in the election campaign, Massa will opt for his final appearance in Neuquén, before he can no longer continue his election campaign within the framework of the electoral calendar. It will be for them Inauguration of the Vaca Muerta Norte oil pipeline which will enable an increase in transport capacity and Export crude oil to Chile. He could even be accompanied by governors Omar Gutiérrez (current Neuquén), Rolando Figueroa (recently elected) and Alberto Weretilnek, who will be governor of Río Negro for the third time.
At Argentina’s oil and gas trade show, the industry’s most important, held last week in La Rural, more than a dozen industry CEOs agreed that Vaca Muerta must be considered as such an exhibition “Regional market”. Although they questioned the country’s macroeconomic challenges, they see it as positive that the energy agenda is present in the three parties and the possibility of reaching the presidency.
