Argentina to Tender 5-6 LNG Cargoes for Winter Energy Needs

Argentina will tender 5-6 LNG cargoes next week for winter gas needs, starting the process on March 17. Previous year saw imports of 10 cargoes. With a focus on increasing output from the Vaca Muerta Formation, Argentina plans to reduce energy imports amid an energy trade surplus of $5.67 billion in 2024.

Argentina is set to initiate a tender for 5 to 6 LNG cargoes in the forthcoming week to satisfy prospective gas demands for the upcoming southern hemisphere winter. The bidding process will commence on March 17, with expectations to receive bids during the week of March 25. In the previous year, Argentina had imported 10 LNG cargoes from a total of 30 received throughout the year.

During the CERAWeek Conference in Houston, an executive from Excelerate Energy, which operates the sole LNG import facility in Argentina, noted that there has been no request for a floating regasification unit for this winter. Daniel Gonzalez, Secretary of Energy and Mining Coordination, stated that the expected number of LNG shipments would be lower than in the previous year, provided that weather conditions remain consistent.

Argentina is focusing on increasing production from its Vaca Muerta Formation, which is recognized as the second largest unconventional gas reserve globally and the fourth largest oil reserve. This strategic endeavor aims to curtail energy imports significantly. Following a period of trade deficits, the country achieved an energy trade surplus in 2024, amounting to $5.67 billion.

In summary, Argentina is preparing to tender for 5 to 6 LNG cargoes to cater to its winter gas requirements, reflecting a strategic approach to energy management. The tender process, scheduled to start on March 17, could signal a shift towards increased domestic production from the Vaca Muerta Formation. With expectations of reduced shipments this year compared to last, Argentina aims to decrease energy imports and improve financial stability following a substantial trade surplus in 2024.

Original Source: www.marinelink.com