Due to the gas plan, Argentina would be excluded from the energy crisis raging in Europe

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“Fossil fuels require permanent investments and cuts were made last year,” explained Martín Bronstein, director of the Center for Energy, Politics and Society Studies (CEEPYS).

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But at the same time, the world’s first governments, pressed by signs of critical climate change, decided accelerate the transition to clean and renewable energies. “The problem is that technology cannot yet accompany political decisions“, Synthesized Bronstein. The specialist explained that in the case of Germany, together with Angela Merkel, it was decided to put aside coal-fired power plants and began to replace them with wind power. “This year there was no wind in Germany and that’s why they had to import gas from Russia,” he explained. The director of CEEPY said that behind there is a “Geopolitical game”. He explained that the former President of the United States, Donald Trump, had imposed sanctions on companies that participated in the construction of a gas pipeline that connects Russia to Germany in the north, in order to sell American gas. produced in the United States. from states to Europe, unconventional fields in this country.

Another factor that plays a role in driving up the price of gas, along with that of oil, are the hurricanes in the Gulf of Mexico area, which this year affected several extraction platforms. As Bronstein explained, since the start of this year, Gas futures fell from $ 2 per million BTU to $ 5.7 (quote from yesterday). These cost increases are starting to be felt in the prices of first world users.

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Former US President Donal Trump had imposed sanctions on companies that participated in the construction of a gas pipeline that connects Russia to Germany in the north.

Kindness: Argenports

Argentina on the sidelines

The specialist, meanwhile, considered that the Argentina will be outside the global trend if the so-called gas plan can be sustained, which guarantees an internal price of US $ 3.5 million per million BTUs for at least four years. According to data from the National Energy Secretariat, in July of this year, About 64.9 million cubic meters per day of unconventional gas were produced at Vaca Muerta. Besides, production increased by 5.9% compared to June and 17.3% year on year. Regarding gas, in the month of July, around 130 million cubic meters of total production were achieved per day, which represents a growth of 2.7% compared to the previous month and 2.8% year-on-year. annual.

“Argentina holds 60% of gas-fired electricity production and is in a very good position. The Gas Plan and the Vaca Muerta field give us good prospects for the future “said the energy markets specialist. For this, the country will have to maximize the possibilities of unconventional reserves located mainly in Neuquén. In fact, he points out that in the future Argentina will have a high potential for exporting gas via pipelines to neighboring countries. “This is where we need to focus,” he said. The analyst indicated that there is a combination of factors in the region. On the one hand, he said that Bolivia, which is one of the main suppliers of gas to the southern region, was reducing its production. Meanwhile, Chile is increasing its demand. “Every day there are new firm contracts”, declared the director of CEEPYS. Likewise, he indicated that Brazil is increasing its oil production, but suffers from gas deficiencies. And beyond that, Bronstein pointed out that “If we can develop Vaca Muerta’s potential to produce excess volumes, it could be exported beyond neighboring countries” and that “for this an investment of 5 billion US dollars is necessary, which corresponds to the cost of a liquefaction plant”.

A market source argued that the Gas Plan “takes us out of the debate on the value of the international price of gas in the world and the impact on the consumer’s mouth. and the proof that companies are not losing is that in the Gas Plan they even offered below this value ”. Some claim that, if Vaca Muerta were not present, Argentina would have to pass on the increase in international costs to the domestic market.

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Telam

The cost of the transition

On the other hand, Bronstein indicated that “The rise in coal and gas prices shows that the energy transition will be neither smooth nor easy, and the Chinese government’s decision on the announced net zero emissions targets for 2060 will not be enough to achieve it. “

The specialist warned that “If there isn’t enough coal and gas for the Asian giant, there won’t be enough coal and gas for all the other countries that need to import it.”. “The countries producing these resources locally will derive big benefits from energy exports, but the others, having to pay for this energy, will have difficulties for their economic growth,” he noted.