(Energy Analytics Institute, Aaron Simonsky, 16.Nov. 2018) — The price of natural gas in Brazil and Argentina to-date has risen in both markets compared to year-end 2017.
In Brazil, the price of gas has increased 43% to $6.00/MMbtu during the fourth quarter of 2018 compared to $4.20/MMbtu at year-end 2017, reported online media La Razón, citing official data published on the website of the country’s Hydrocarbon Ministry.
In Argentina, the price of gas has increased 40% to $7.00/MMbtu during the fourth quarter of 2018 compared to $5.00/MMbtu, reported the online media, citing statistical information published by the government.
The export prices for Brazil and Argentina are defined by a formula. In the case of Brazil, the price is determined based on the price of a basket of three types of fuel oil. In the case of Argentina, the price is also determined based on the price of three types of fuel oil, but also incorporates diesel fuel into the calculation, according to La Razón. Based on these parameters, the natural gas contract price is calculated every three months or every quarter.
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