Argentine President assures Chile a natural gas supply through 2024

Argentine President Alberto Fernández Thursday said his country would guarantee the supply of natural gas to neighboring Chile until Dec. 31, 2024, it was reported in Buenos Aires. With Bolivia’s production declining, South America is looking to Vaca Muerta as a possible source, it was also explained. Between January and July, Argentina sold Chile US$ 556 million worth of natural gas, an 86.8% growth from the same period last year.

After he participates in the G20 Summit in New Delhi, Fernández will travel to Santiago to attend the ceremony marking the 50th anniversary of General Augusto Pinochet Ugarte’s coup d’état against Socialist President Salvador Allende starting a 17-year-long dictatorship.

While in the Chilean capital, Fernández is expected to discuss the energy integration process with local authorities. Fernández is to be escorted by Undersecretary of Latin American Affairs Gabriel Fuks and Energy Secretary Flavia Royón, who have been working with their Chilean counterparts on the issue.

According to Ámbito citing government sources, “Argentina authorized uninterruptible exportable volumes until December 31, 2024.” The publication also mentions “firm natural gas exports for the following winter season for up to 5 million cubic meters per day and up to the end of 2024 for up to 9 million cubic meters per day through the central zone from October to December 2024.”

Argentina’s Foreign Ministry also explained that the operation was coordinated “enough time in advance so that Chilean buyers can optimize their decision making” and highlighted gas was “the most sustainable way, in environmental and economic terms, to move towards the decarbonization of the energy matrix, by taking advantage of Argentina’s competitive advantages in production and the energy complementarity that characterizes the bilateral relationship.”

Economy Minister and presidential candidate Sergio Massa had underlined the need to diversify the export basket.

Source: Merco Press

Alberto FernándezArgentineBoliviaChileSouth America