Argentina-Chile gas exports seen on hold to 2008

06 September 2007 22:28  [Source: ICIS news]

BUENOS AIRES (ICIS News)--Domestic priorities could prevent Argentina from restoring normal gas shipments to Chile this year, technical director Gerardo Rabinovich of the Argentina Energy Institute, a private consultancy, said on Thursday.

“This country has a very strong demand and in the summer the situation can be worst because of the growth on the demand of electricity,” said the consultant.

The South American summer season runs from December to March, and the winter from June through September.

Argentina in early August pledged to restore natural gas shipments to Chile following interruptions due to an exceptionally cold winter, but Rabinovich said that until local demand is fully satisfied, Chile would continue to wait.

Restrictions on electricity consumption were fully lifted in August, following rationing measures imposed by the government to curtail gas consumption in Argentina.

However, Methanex, the world’s largest methanol producer, on Wednesday said that three of its four production lines in Chile remain idle pending restoration of Argentina’s gas shipments to normal levels.

According to data from the Argentine gas regulator Enargas, Methanex has not received any gas from the country in recent days.

The largest quantity of gas shipments are going to the Chilean capital Santiago via the GasAndes pipeline, and are directed toward residential consumers.

“There is an agreement between Argentina with Chile in this way and the surplus of gas is sent by Norandino pipeline, which is principally intended for electricity production in the copper mines of Chile,” Rabinovich said in Spanish.

In August both pipelines received gas intermittently, while Methanex did not receive any shipments at all.

“Argentina does not have conditions to restore its full supply to Chile in the short term. It can happen in some days where there is a surplus, but generally it will be not able because the local situation will be worst if Argentina does not find other energetic sources,” Rabinovich said.

By: Cristina Kroll
+1 713 525 2653

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