Energía Argentina SA (Enarsa) signed an agreement with Bolivia to ensure the supply of gas during the winter, supplying the demand of seven provinces in the center and north of the country. This measure seeks to avoid shortage problems due to the delayed completion of the Reversal of the Northern Gasduct.
Ninth addendum to the contract with YPFB
The state company Enarsa announced the signing of the ninth addendum to the contract with Yacimientos Petrolófilos Fiscales Bolivianos (YPFB). This agreement guarantees the supply of natural gas for northern Argentina during the months of August and September of this year.
From Enarsa, they assured that “this supply will allow the central/northern area of the country to be supplied with up to 4 million cubic meters per day (MMm3/day) depending on the requirement of internal demand, while the Gasduct Reversion project is completed. North, currently underway.” They also specified that “said TGN gas pipeline Reversal project is estimated to be in operation on September 15, allowing the northern provinces to be brought to the northern provinces with an additional 5 MMm3/day to the current ones and in a second stage another 4 MMm3/day.” .
Contract renewal and objectives
The supply contract between Argentina and Bolivia, which supplies gas to seven provinces in the center and north of the country, expired on July 31. With the new renewal, it is extended for two more months, with the objective that, once the extension period has passed, the Reversion of the Northern Gasduct is completed and the demand begins to be covered with resources from Vaca Muerta.
Additional measures to avoid shortages
After the crisis due to the gas shortage in May, the Government seeks to prevent this scenario from being repeated in the coldest months of the year. In addition to the agreement with the Bolivian oil company, it advanced in negotiations with Brazil and Chile to reinforce supply.
With Brazil, a Memorandum of Understanding was signed at the end of April between Enarsa and Petrobras for a period of three years, with different purposes, among them “to solve the gas supply of the NOA while the recently tendered works for the reversal of the Northern Gasduct are completed. ”.
Agreement with Chile
With Chile, it was agreed last week, with the state-owned Enap, to import natural gas to supply northern Argentina from the Mejillones Liquefied Natural Gas (LNG) terminal. The Chilean Ministry of Energy reported that “Engie Energía Chile and Enap Refinerías will sign a contract for the sale and purchase of natural gas to export the volumes arranged to Enarsa.”
Deal Highlights
- Enarsa signed the ninth addendum to the contract with YPFB.
- The agreement ensures the supply of gas for seven provinces during August and September.
- The Reversion of the Northern Gasduct is estimated to be operational on September 15.
- Enarsa signed a Memorandum of Understanding with Petrobras to ensure supply to the NOA.
- Agreement with Enap of Chile to import natural gas from the Mejillones LNG terminal.
