The gas project with Petronas, the oil terminal and a
two-phase gas pipeline connecting Vaca Muerta to the country's
Northern region are needed to boost the country's oil and gas
output and exports.
The gasline's first phase is set to complete
construction in June, while a tender for the second phase is
expected in the second quarter as the government engages in
talks with funds from Saudi Arabia and China to secure bank
financing, Argentina's energy secretary Flavia Royon said in
Houston.
Argentina sits on one of the world's largest shale gas reserves, but the cash-strapped nation still must import fuel to generate electricity. Its energy deficit last year was estimated at some $5 billion. Oil and gas producers are waiting for the government to send draft legislations for promoting LNG and hydrogen production to Congress, which will happen this month, Royon added. The proposed gas law, which had been expected to be debated by lawmakers earlier this year, would encourage construction of LNG plants and related infrastructure. "We see that law as a very good first step (to create) conditions in the future for other businesses," Iuliano said. "It's absolutely necessary."
The bill is expected to include measures to secure fiscal stability, access to currency markets and permits for companies to be able to invest in long-term gas and LNG projects, he said. (Reporting by Marianna Parraga; Editing by David Gregorio and Diane Craft)
