Argentina and its opportunity to be the world’s gas reserve

Argentina and its opportunity to be the world’s gas reserve

Argentina has the possibility of exporting Liquefied Natural Gas (LNG) to levels unimaginable before the appearance of the deposit of Dead cow. YPF and Petronas, one of the most important companies in the world in that field, launched a tender for the first engineering of a gas megaproject. This is an investment that would put the country in a position to export 20 billion dollars annually.

The agreement was signed a little less than two years ago and promotes the installation of a LNG in some strategic port on the Atlantic. The objective is to export this fuel by sea and through gas pipelines connected to neighboring countries. The construction of the plant will require an estimated investment in 10 billion dollars in the first stage. This initiative represents a great benefit for the country and the economy as a whole. Investments of this type are those that can lead us to a path of sustained growth.

According to the technical studies that are being carried out, the total production capacity, if everything goes well, would reach 25 million tons of gas per year. This would allow the country to take the export leap it needs, generate foreign currency, stop importing fuel and also promote the development of Dead cow. The benefits of this initiative are undeniable and requires the support of all sectors involved.

To take into account what this project means, it should be noted that Argentina imports annually 30 LNG ships to cover internal demand, especially in the winter season. Once operational, the liquefied gas plant would be able to export 460 ships to markets such as Europe and Asia. A drastic change that would take the country to an extremely advantageous position in world trade, and above all, would increase the production of a key resource for the energy transition.

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Now, a project of such magnitude requires an adequate environment that provides the best conditions to guarantee its success. Recently, the possibility of installing the plant in the area of Punta Coloradaon the Rio Negro Atlantic coast when the original idea was always to do it in the port of Bahía Blanca.

This is not a minor decision, since the operational advantages that the Bahia location can provide exceeds the Rio Negro location for several reasons. It is essential to highlight certain characteristics of the Buenos Aires coastal city that make it the most suitable place to install the plant, mainly in environmental terms.

White Bay, a city that has an extensive history in the gas sector, has a qualified workforce available with accommodation and housing options. Río Negro does not have this advantage because it does not have specialized workers. It also does not have housing available so it would have to build camps and places to spend the night.

Unlike Punta Colorada, whose coastal lands are not part of a manufacturing fabric, Bahía Blanca already has industrial areas with land uses compatible with port activity. By having protected areas in an existing industrial and port model, the environmental impact is lower than in the Patagonian province.

With respect to accessibility, the Buenos Aires city can be reached by four national and three provincial routes while Punta Colorada, which is far from urban centers, is only accessed by route 3. The same occurs with respect to the industrial development of both towns and the high tension lines available.

From a nautical point of view, Accessibility is also better in Bahía Blanca since it has a maintained canal unlike the Rio Negro city whose dock is 1,400 meters from the coast.. Furthermore, operability due to climatic factors is greater in Bahía Blanca unlike Punta Colorada which, due to its adverse climate, has 40% inoperability.

Finally, the city of Black river requires shelter works to have a maritime structure that protects against wave action. Bahía Blanca, on the contrary, has a natural shelter, a characteristic that gives it a competitive advantage over its Rio Negro counterpart. The numbers are too clear in this regard and the location of a mega project of these characteristics deserves to be used to its maximum potential, since Argentina has more than enough resources to be a source of gas for the world.

Treasurer of the Argentine Federation of Oil, Gas and Biofuels Unions (FASIPEGyBIO)

Source: Ambito

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