Post by
TouchDown12 on Nov 26, 2018 11:52pm
Argentina To Start First-Ever LNG Exports In '19 Vaca Muerta
Argentina will be joining the ranks of exporters of liquefied natural gas (LNG) next year when it stars exporting gas from its Vaca Muerta shale play. Argentinas energy firm YPF and Belgian energy shipping company Exmar have signed a ten-year agreement, under which Exmar will deploy a floating LNG unit (FLNG) to the Port of Baha Blanca in the second quarter of 2019, Exmar said on Wednesday. The FLNG unit will be redeployed as Tango FLNG to produce and export LNG from Vaca Muerta, one of the few shale gas plays in production outside the United States. Thanks to the deal, Argentina will become part of the select club of global LNG exporting nations, with an initial plan to export 500,000 tons of LNG per year to overseas markets, Exmar said in a statement. Thanks to the commercial relationship with EXMAR we are now able to add value to the resources extracted from Vaca Muerta, and take full advantage of the seasonal opportunity with Asian markets and our unique location to serve demand centers, YPF President Miguel Gutierrez said. Argentinas natural gas demand is highly seasonal, with peak demand in the Argentinian winter and significantly lower consumption during the summer months. In October, as the Argentinian summer was approaching, the economy was shrinking, and demand for natural gas dropping, YPF was said to be scaling back its natural gas output and halting production at some wells. Given the seasonality in Argentinas natural gas demand, Texas-based LNG company Excelerate Energy and Argentinas Transportadora de Gas del Sur signed in September a memorandum of understanding to jointly study the technical and commercial viability of an LNG project at the Baha Blanca port city for liquefying and exporting natural gas during the summer season. The companies expect to complete the study by the end of this year.
Comment by
TouchDown12 on Nov 26, 2018 11:55pm
This development could be material to MVN ... not unlike LNG Canada is to Montoney players in WCB in Canada. Just wanted to post it - since some of you might have extra insights to share about it's potentail positive impact on MVN and it's holdings. GLTA TD12