09 December 2010 22:58 [Source: ICIS news]
BUENOS AIRES (ICIS)--Repsol YPF’s massive find of unconventional natural gas could provide some relief to what has been annual winter cut-offs in fuel supplies, a petrochemical source said on Thursday.
The Argentine unit of Spain's Repsol YPF said it has found an estimated 4,500bn cubic feet (bcf) of unconventional natural gas in its Loma La Lata field in the Neuquina basin.
“This finding could have a positive impact for the Argentine petrochemical producers but only in about five years,” said Rolando Meninato, president of Dow Cono Sur.
“The natural gas industrial supply would receive a boost but not in time for next winter since a lot of work and investments will be needed to extract this gas,” Meninato said.
Because of the nature of the reserves, producers would need to use horizontal drilling and hydraulic fracturing to access the gas.
Recently, tight supplies of natural gas have caused annual winter cutbacks to petrochemical producers and other industrial customers. Those cutbacks were made to insure natural gas supplies to residential customers, who used the fuel to heat their homes.
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