TGS Halts Argentina LNG Plant as State-Run Project Seeks Backers

TGS Halts Argentina LNG Plant as State-Run Project Seeks Backers

Gas transporter TGS SA is striking the breaks on strategies to develop a little liquefaction plant to deliver Argentina’s growing production of shale gas as state-run energy business YPF SA looks for industry-wide assistance for its massive job.

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Bloomberg News

Jonathan Gilbert

Released May 07, 20242 minute read

Tank at a YPF SA center in Plaza Huincul, Neuquen province, Argentina, on Tuesday, March 2, 2021. YPF, Argentina’s state-run oil business, requires to come up with more than $1 billion to stimulate drilling in Patagonia, where it’s leading advancement of the greatest shale spot outside the U.S. Picture by Anita Pouchard Serra /Bloomberg

(Bloomberg)– Natural gas transporter TGS SA is striking the breaks on strategies to construct a little liquefaction plant to deliver Argentina’s growing production of shale gas as state-run energy business YPF SA looks for industry-wide assistance for its massive task.

“We’ve put the LNG task on standby due to the fact that there’s a brand-new technique from YPF,” TGS Chief Financial Officer Alejandro Basso stated on an incomes call Tuesday.

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TGS had actually been checking out styles for its own plant, an endeavor with Texas-based Excelerate Energy, and had actually even protected area for the center at a port on Argentina’s Atlantic coast.

Now, Basso suggested, the midstream gas business is rather considering a larger job that YPF, Argentina’s greatest oil and gas manufacturer, is establishing with Malaysia’s Petronas.

Excelerate Energy decreased to comment.

Argentina presently imports LNG however has lofty objectives of ending up being a net exporter of its shale gas.

YPF, which hasn’t yet started building and construction on its organized terminal, intends to begin exporting LNG in 2027 and increase volumes over the following years. Gas driller Pampa Energia SA, which is TGS’s greatest investor, just recently stated that it wishes to take part in the YPF-Petronas job.

Other highlights from TGS profits call:

  • Business got a 675% charge boost for its pipeline services in April, however hasn’t gotten word from the federal government on assured regular monthly inflation modifications
    • Individually, it anticipates the federal government to begin work quickly on a detailed evaluation of gas costs and produce a long-lasting rates structure to put in location next year
  • Profits for midstream service company are being improved by Argentina’s growing shale gas production, and TGS anticipates growths of its gas conditioning capability to be prepared in the 2nd half of 2024
  • State electrical energy wholesaler Cammesa has actually added 3 months of financial obligation with TGS, and Basso just anticipates to make money when the federal government strikes a contract with power generators that have not been getting payment either
  • Business is preparing to go to the bond market to handle liabilities, however the timing depends upon advancements concerning the renewal of its pipeline-operating license

— With support from Ruth Liao.

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