Argentina positions itself as a potential supplier of LNG and green hydrogen to the European Union

Argentina positions itself as a potential supplier of LNG and green hydrogen to the European Union
Argentina positions itself as a potential supplier of LNG and green hydrogen to the European Union
Argentina seeks to boost LNG exports by modifying the legal framework

At a meeting organised by the European Union, the Círculo de Políticas Ambientales and CEARE (Centre for Studies on Energy Regulatory Activity) laid the groundwork for future collaboration in energy matters between the EU and Argentina. Specifically, the possibility of the country positioning itself in the coming years as a permanent supplier of LNG and green hydrogen to the old continent was raised.

Kadri Samsonthe European Union’s Energy Commissioner, explained the current situation in Europe and why they need energy suppliers to supply them again. “In February 2022, Russia launched his unwarranted attack on Ukraine “This caused a stir in Europe, but also turmoil in our market. This was a key moment for our energy system: costs soared and for the first time many Europeans were faced with not being able to meet their energy bills,” the EU official lamented.

Simson said that, faced with this scenario, the governments that make up the European Union introduced a series of short-term measures to relieve consumers and end their overdependence on a single supplier (Russia).

“We are dealing with a profound transformation of our energy system. In 2021, 45% of the gas consumed in the 27 EU states came from Russia. Now the share of gas coming from that market is 15%,” he said.

Kadri Simson, European Union Energy Commissioner, said the EU will make funds available for the development of energy projects in Argentina (Reuters)

The Energy Commissioner said that Europe needs a network of partners to continue its energy transition. “Last year, two new memoranda were signed with Argentina, one of understanding on energy and another on critical raw materials. I am in Argentina to follow up on these commitments,” she stressed.

In this context, he assured that the EU will make funds available to support the feasibility studies of the projects that are going to be deployed in Argentina. “We are trying to build together a solid framework for clean hydrogen in Argentina. We are considering replicating the program here 250 million euros of a platform that was launched in Chile to finance the transportation of renewable energy,” he concluded.

The Secretary of Energy of the Nation, Eduardo Rodriguez Chirillotook up Simson’s words and argued why, from his point of view, Argentina meets the necessary conditions to become a permanent energy supplier to the European Union.

According to the Energy Secretary, by 2030, the EU must purchase 10 million tonnes of green hydrogen energy from partner countries

“This morning we had a working meeting with Simson and his team. The first question I asked myself was whether Argentina can be a strategic partner of the EU and I concluded that yes, we can become partners, despite the current situation we are going through,” he said.

“The current geopolitical situation helps Argentina to maintain stable and long-lasting bilateral relations. Unlike other countries or blocs of countries, we have no constraints,” he said.

“Argentina, as a seller country, has all the potential of renewable and non-renewable resources to ensure sustained compliance with the commercial commitments assumed by companies. At the same time, the Bases law established structural reforms that allow us to guarantee the sustainability over time of the products we sell,” argued Chirillo.

The official explained that the EU is a region that requires the consumption of LNG. “Kadri listed the problems that dependence on Russia has generated for them and we, in that framework, can generate commercial relations. We can also collaborate on renewable hydrogen. For them, it is the third pillar of the energy transition,” said the national official.

Energy Secretary Eduardo Rodríguez Chirillo said that conditions are in place for Argentina to export LNG and green hydrogen to Europe

“I conveyed to him Kadri Samson We would like to draw up a roadmap based on your visit in which we can work together to facilitate investors in establishing bilateral relations that allow for a match between the supply and demand of LNG and renewable hydrogen. This will be done by signing long-term contracts, promoting and channelling financing for investments in the aforementioned areas, for which the EU can commit funds. In Chile, they are carrying out a pilot experience in this regard,” he stressed.

In terms of LNG, Rodríguez Chirillo explained, what Argentina achieved with the Law Bases The goal is to establish the bases for long-lasting and stable commercial relations. “For this reason, Law 17,319 was modified, which has worked very well since the 60s, and the gas law, in some aspects specifically linked to LNG. It was proposed not to treat it as a normal gaseous gas, but rather to have protection so that it can be exported. The idea is that companies that invest to export gas through LNG can do so through long-term contracts. In addition, by eliminating the concept of energy sovereignty and self-sufficiency, what we are trying to achieve is that the law points to a need that the country has, which is to take advantage of the window of energy transition,” he said.

According to the Secretary of Energy, between now and 2030, the EU must acquire 10 million tons of green hydrogen energy from partner countries. “We can be present there, because we have the renewable resources in wind and solar energy, the water for electrolysis, the large available surfaces and certain port infrastructure that needs to be improved. We have to be able to issue permits in a one-stop shop scheme so that the projects can take off,” he continued.

“In addition to producing hydrogen, what we can do is export PtX (ammonia, methanol or synthetics such as SAF, for aviation). We may present a limited hydrogen bill where issues more closely linked to technical standards, certification schemes, hydrogen in gas networks, how to make hydrogen are addressed.” blending and so on,” concluded Rodríguez Chirillo.

 
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