07 November 2011 03:07 [Source: ICIS news]
BUENOS AIRES (ICIS)--Industry participants in Argentina see greater support from the government with regard to easing energy shortages for the manufacturing sector, an industry source said late on Sunday.
Energy is subsidised, but the government has announced plans to gradually reduce the subsidies, which will allow gas prices to rise to “real” values, according to the source. He was speaking on sidelines of the 31st Latin American Petrochemical Association (APLA) annual meeting in Buenos Aires.
Private investment in the energy sector has started and more is expected as gas prices rise, the source said. As a result, gas shortages and industry outages during the winter should eventually be reduced.
The Argentinean government prioritises home heating during the winter gas shortages, reducing delivery to the industrial sector.
Although gas production will not immediately increase because of the new policies, the government in Argentina has become a better manager of current gas supply, so availability will increase even during the winter gas shortages, the source said.
The 2011 APLA conference ends on Tuesday.
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