The intense cold that is being recorded in Argentina has led to a collapse in the supply of compressed natural gas (CNG), according to what the secretary of the Chamber of Distributors of Petroleum Byproducts and Annexes of Santiago del Estero informed Cadena 3. Pedro Llorvandi.
“The situation is collapsing due to the entry of the polar wave,” said Llorvandi.
In this regard, he explained that gas consumption has increased considerably due to the cold weather and authorities have had to make difficult decisions about how to distribute it. “There is no gas for everything: either we give gas to one or we give gas to another,” he commented.
Interruptible service stations, those that have a contract that allows their supply to be cut off in the event of a gas shortage, have already begun to experience outages.
Llorvandi warned: “If this cold situation does not ease and this continues to grow, it is very likely that next week we will have general cuts for all CNG service stations.”
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He also added that this problem not only affects the north of the country, but also other regions, such as Mar del Plata, La Pampa and Neuquén.
If the polar wave persists with the same intensity during the next week, it is possible to see a temporary closure of CNG supply throughout the country, he warned.
Llorvandi also pointed out that, although Argentina has abundant natural reserves such as Dead cow, there is a lack of infrastructure to transport it from the extractive points to the urban centers where it is consumed. “The problem here is transportation. You have the product to bring it, but you don’t have how,” he lamented.
Shortage despite Vaca Muerta
Regarding the lack of fuel, the vice president of the Chamber of CNG Distributors, Oscar Olivero, explained that, although in Vaca Muerta “there is surplus gas” and with that resource “it would be enough for the entire country and also for export, unfortunately, “There is no way to transport it to the consumption centers, because the Néstor Kirchner gas pipeline, which reached Salliqueló, has yet to complete the section to the trunks that go to the northern, eastern and western regions.”
Once this section is completed, which is still in progress, it is likely that there will be no shortage.
But, in the meantime, ships must be supplied with imported LNG and there arises the problem with imports and the subsidy policies carried out by the Government.
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“As there are no subsidies, the gas that comes in ships costs between 12 and 13 dollars per million BTU, and the gas sold at the stations costs 4 dollars per million BTU”, which is why “no company is going to buy at 12 dollars to sell at 4,” he indicated.
Due to the low temperatures, household gas consumption increased, a situation that will be reversed if temperatures increase above 4 degrees minimum and an average of 16 degrees maximum.
Finally, he expressed that, when the works on the Néstor Kirchner gas pipeline come to an end, the transportation of this resource can be done directly from Vaca Muerta.
“Informed, upon return” interview.
