Argentina’s gas production falls short of expectations ahead of winter

RIO DE JANEIRO, BRAZIL – Argentina’s natural gas production fell by 11% year on year in January to 116.011mn m3/d (4.097bn cf/d) in the first full month of a new upstream stimulus program, reviving supply concerns heading into winter.

Argentina’s state-controlled YPF, the country’s largest hydrocarbons producer, saw gas output in its operated areas shrink by 25% to 29.382mn m3/d, according to the latest energy secretariat data.

In the southwestern province of Neuquén, which encompasses most of the Vaca Muerta shale formation, gas output declined by 14%  to 62.11mn m3/d, of which 69% was unconventional, according to provincial data.

The January data suggests that the government’s gas production stimulus program may fall short of expectations ahead of winter, when gas demand soars on heating requirements.

If Argentina fails to procure enough gas, industries could see a revival of gas supply curtailments as early as May when the southern hemisphere winter begins.

In December 2020, the government awarded 67.42mn m3/d of gas supply in an auction aimed at procuring more than 70mn m3/d of gas at subsidized wellhead prices for power generation in 2021-24.

Anticipating a shortage, the government recently launched a tender for the short-term lease of a regasification vessel, and opened a supplemental auction for extra wintertime gas.

Argentina has an LNG import terminal in Escobar, Buenos Aires province. It also imports pipeline gas from Bolivia, where gas output is declining. Argentina imports some regasified LNG from Chile as well.

In terms of crude, January output fell by 5%, on the year, to 486,919 b/d. YPF’s crude production slipped by 4% to 226,319 b/d.

Oil production in Neuquen grew by 7% in January to a record 172,865 b/d, of which 78% was unconventional.

Related coverage: Panama allows transgender women to compete in beauty pageant · At least 20 people killed in highway accident in central Bolivia · Crude oil market sees "clear signs of recovery," says Venezuelan oil minister · Guyana investigating two Venezuelan fighter jets having invaded its airspace

More: Latin America news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error