The first objective of these Rounds is to extend the volume commitments awarded in the previous rounds (equivalent to 70 flat MMm3/d).
Within this framework, the National Secretariat of Energy received extension offers for practically all of this volume (around 98%), at almost the same price, that is, 3.54 USD/MMBTU, less than 1 cent of difference. .
In this way, in this complex context of international crisis and rising prices, it was possible to maintain the price awarded at the end of 2020 – beginning of 2021 until 2028.
The second objective is the filling of the President Néstor Kirchner Gas Pipeline, which will come into service next winter.
For this reason, flat volumes of 14 MMm3/d were requested in the tender, and we received offers for almost 18 MMm3/d at an average price of 3.41 USD/MMBTU, with a 15% discount compared to the maximum price of 4 USD/MMBTU raised in the contest.
This is equivalent to 12 cents less than the flat volumes already awarded in the first Rounds of the Plan.
At the same time, the average price of the first 14 MMm3/d of lower value offered is 3.3 USD/MMBTU, that is, 17% with respect to the maximum price of the tender and 20 cents less than the flat volumes already awarded in the first Rounds of the Plan.
On the other hand, regarding the filling of the Néstor Kirchner Gas Pipeline, winter peak volumes of 14 MMm3/d were requested and offers were received for almost 28 MMm3/d, or almost double.
The average price of 4.7 USD/MMBTU represents a discount of 32% with respect to the maximum price foreseen in the contest.
In turn, the average price of the first 14 MMm3/d of the lowest value offered is 3.9 USD/MMBTU, with a 43% discount with respect to the maximum price of the tender.
Consider that these volumes mainly replace LNG and alternative fuels in thermoelectric plants. For reference, LNG future prices for the coming winter are above $40/MMBTU.
In terms of prices, it was achieved – taking the offers received: maintaining the price of the Gas.Ar Plan 20/24 to 2028 for base gas; lower the price of the first 14 MMm3/d incrementally by 17% compared to the tendered ceiling and 20 cents (6% less) compared to Plan Gas.Ar 20/24.
Regarding winter gas (winter peaks), the price of the first 14 MMm3/d registered offers for 3.9 USD/weighted average MMBTU or 44% less than the tendered ceiling and 8% slightly higher than the current winter peaks .
The Gas.Ar Plan is a program to stimulate the production of natural gas created by Decree 892/2020 whose objective is to ensure the supply of the internal market.
Source: Ambito
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