(Energy Analytics Institute, 15.Oct.2020) — Argentina’s President Alberto Fernández announced details of the country’s Gas Plan 4 during a visit to the Vaca Muerta formation.
The gas plan aims to replace a good part of imported liquids with national gas production, generating estimated savings of $2.574bn over its four years of validity, local newspaper Río Negro reported 15 October 2020.
A price ceiling of $3.70 per million BTU (MMbtu) will be guaranteed to producing companies, the daily reported, citing comments from Argentina’s Energy Secretary Darío Martínez. The ceilng price is nearly $1.70/MMBtu above average prices in the domestic market.
Argentina’s government will be responsible for the difference between the average price and the ceiling price, and for 2021 it has already allocate $1.491bn for the subsidy.
By Aaron Simonsky. © Energy Analytics Institute (EAI). All Rights Reserved.