Argentina, Chile sign landmark energy exchange deal

Thursday, December 7, 2017

Argentina and Chile have signed a bilateral agreement that is seen as an important step towards energy interchange between the two countries.

Chile's energy minister Andrés Rebolledo and his Argentine counterpart Juan José Aranguren signed the agreement in Buenos Aires that will increase exchange of electricity and natural gas.

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The agreement establishes the regulatory framework for energy swaps, aiming to ensure supplies in case of temporary or seasonal deficiencies or emergency situations, among others.

There is currently one transmission line connecting the countries from the Antofagasta region in Chile to Salta province in Argentina, and feasibility studies are being carried out for five others. For natural gas there are seven pipelines that connect the two neighbors: NorAndino and Gas Atacama in the northern zone; GasAndes in the center; Gasoducto del Pacífico in the Biobío region; and Posesión 1 and 2 and Frontera in the south of the country.

This agreement will also allow for the supply of natural gas to Chile's Biobío area, where there is potential demand from industry and for electricity generation, from the Vaca Muerta shale field in Argentina's Neuquén province.