To supply homes and comply with the fiscal surplus. Nation ordered a gas cut to industries
Industries with high gas demand, such as lumber, ceramics and plastics, will suffer cuts. The emergency was caused by temperatures much lower than expected for this time of year.
The polar wave that is being experienced in some areas of the country forced the government of Javier Milei to recalculate the energy strategy and the Ministry of Energy announced that it will apply a series of scheduled gas cuts in industries to prioritize the supply to residential users and businesses.
In this sense, the libertarian administration confirmed the implementation of “necessary measures” to ensure supply to homes and commercial premises “in the framework of the anticipated presence of low temperatures, which have been lower than those predicted (and more typical of winter).
For this reason, the Government will apply gas cuts to industries
This explains the lack of Compressed Natural Gas (CNG) in hundreds of service stations throughout the country for several days. In other words, distribution to gas stations is temporarily interrupted with the aim of supplying families and businesses.
To this end, the National Gas Regulatory Entity (ENARGAS) “has instructed licensees and transporters to follow the protocol that requires cutting or restricting interruptible supplies to maintain the necessary pressures in the system.”
On the other hand, the portfolio led by Eduardo Rodríguez Chirillo required the Wholesale Electricity Market Administration Company (CAMMESA), to “make use of gas transportation in the interruptible mode only up to the technical minimum necessary to sustain the electrical system, using fuels.” alternatives to sustain electricity demand.”
Indeed, CAMMESA opened a tender in recent days to acquire 12 shipments of fuel oil and diesel in order to address the increase in gas consumption. According to sources in the sector, the public administrator will seek the entry of 7 shipments of 50,000 m3 of diesel oil each and 5 shipments of fuel oil for 200,000 tons in total. The “priority demand” (homes and businesses) is already on track to use almost 80 million cubic meters (m3) per day, when in May it usually demands 45 million.
Simultaneously, Energy announced that it will import a greater volume of Liquefied Natural Gas (LNG) to compensate for the unexpected growth in demand due to the polar wave that was a week early and that was not in the authorities’ forecasts.
Once again, the ruling party blamed previous governments for the state of the energy scheme by stating that “the vulnerability of the gas system derived from its insufficient infrastructure for decades due to lack of investment (which generates bottlenecks in the gas flow). )”.
Likewise, La Libertad Avanza pointed out Alberto Fernández’s management for “the reduction in supply from Bolivia.” Finally, he recognized that these factors were accompanied by “exceptionally high consumption of the priority demand (residential users) of natural gas (from 45 MM3/day to 70 MM3/day).”
Alert among parkers due to lack of gas
The notorious drop in the thermometer triggered gas consumption to such an extent that it doubled the level of May 2023. To avoid a shortage of fluid in homes, the distribution of CNG was restricted and the supply cut would affect about 200 service stations in the whole country.
The Confederation of Hydrocarbon and Related Trade Entities (CECHA) explained that the shortage could last for several days and, at the same time, they acknowledged that they are in permanent communication with the Government.
“We are waiting for a response. At first there were about 100 service stations affected and today we are close to 200. We depend on the entry of ships for the situation to be resolved,” they stated in dialogue with the TN news channel.
Although the nerve center of the conflict is located in the province and city of Buenos Aires, the NA news agency also reported complications of this style for now in Tucumán, Santiago del Estero, La Pampa, Río Negro, Catamarca and La Rioja.
In this context, CECHA began to prepare a survey to calculate exactly how many service stations that dispense CNG “whose contracts are interruptible, and that may suffer cuts if the cold wave continues.”
“There are particular situations such as in La Plata where practically the 33 service stations that dispense CNG are interruptible and only 1 or 2 have a firm contract and did not suffer cuts. In La Pampa, the 11 they ship are interruptible, which makes the case more pressing,” they told PERFIL.
Regarding the dynamics of distribution cuts, the entity explained that when supply is suspended at a service station with an “interruptible” contract, the public turns to the gas station that continues to be supplied by the distributors.
As the contracts contemplate daily supply limits, excess demand from motorists would exceed the contracted amount of gas and, if so, “the distributor can cut off the supply.” If this scenario occurs, the shortage would deepen until the situation normalizes.
