Argentina launches 2nd natgas purchase tender

Argentina's Enarsa has launched its second tender for natural gas supply to meet demand and complement storage volumes for network distributors.

Interested participants are invited to submit bids according to the conditions established in the rules issued by the energy and mines ministry. They appear on the natural gas regulator's website together with the required volumes for each basin.

Natural gas production in Argentina hit a five-year high in 2016, totaling 44.988Bm3. The country's three leading producers – along with Chevron, Shell and Dow Chemical – agreed in January last year to invest US$15bn/y in the Vaca Muerta shale formation from 2018 on.

Last March, Enarsa approved rate increases for pipeline operators TGN and TGS, as well as for residential and small business consumers, phasing out consumer subsidies for natural gas that resulted in a 49% average increase in regulated income for TGN.

The pricing reforms were designed to foment investment in local production and infrastructure and reduce costly gas imports, energy minister Juan José Aranguren said at the time.