The national government paralyzed key infrastructure works linked to the energy sector so he is forced to import gas at a cost four times higher than Vaca Muerta gas. Javier Milei’s incompetence at this point has already generated a cost overrun of more than 2 billion dollars and stresses the fictitious surplus achieved based on cuts in key areas and the postponement of debts.
According to sources from the Secretary of Energythe government was forced to sign new contracts with Bolivia to supply gas to seven provinces in the center and north of the country.
The agreed price is $21 per million BTUwhile Vaca Muerta gas is paid at USD 4.5 per million BTU in winter and the Imported liquefied natural gas is trading below USD 12.
«The price is crazy, very expensive», acknowledged a source from the Ministry of Energy. However, due to this high cost, it is not possible to transfer it to the rates, as it would be unsustainable for users. The extra cost for imported gas will be absorbed by Enarsa and computed as National Treasury subsidywithout directly affecting consumers.
On the other hand, the need to import gas at exorbitant prices poses Questions about the fiscal goal committed by the government. It is estimated that imports will have a impact of more than 2 billion dollars on public accounts. However, from the government they argue that the subsidy bill still falls because there is more gas than last year and international prices have fallen.
Notably The stoppage of works on gas pipelines also affects the possibility of exporting gas at competitive prices to Brazil.
He northern gas pipelineAt first, I was destined to import gas from Bolivia. However, due to decline in hydrocarbon production in Bolivia and the rise of Vaca Muertawhich currently produces more gas than the entire neighboring country, it was decided reverse the flow to guarantee supply in the northern region of Argentina and be able to export gas at highly competitive prices towards Saint Paulthe industrial center of Brazil.
The original project consists of three different worksone of which is the construction of the 123-kilometer pipeline between Tío Pujio and La Carlota. The remaining ones are the 62-kilometer extension of the Juana Azurduy Gas Pipeline and the reversal of the direction of gas injection in the Ferreyra and Deán Funes compressor plants, Lavalle in Santiago del Estero and Lumbreras in Salta. These works, which They were estimated to be completed in 5 months, but there has been no significant progress for more than 6 months.
In turn, the northern gas pipeline reversal work is budgeted in 710 million dollars, with partial financing from a CAF loan. However, With the change of government, the work was stopped, generating delays and a higher cost for the country.
