Argentina and Chile will rehabilitate oil pipeline and seek greater gas trade

Argentina and Chile They confirmed this Monday that they will rehabilitate next year an oil pipeline that unites the two countries and promised to seek greater trade in natural gas.

This was reflected in a joint declaration on energy integration signed by the Argentine Minister of Economy, Martín Guzmán, and the Minister of Energy of ChileClaudio Huepe Minoletti, within the framework of the visit that the Chilean president, Gabriel Boricperforms in Buenos Aires.

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The document highlights that the rehabilitation of the pipeline that connects the Argentine province of Neuquén with the Chilean region of Biobío is scheduled for the first quarter of 2023 and will allow increasing oil exports from Argentina to Chileimproving the security of supply of crude oil to Chilean refineries, “at the same time that it will open the possibility of exporting oil through the Pacific coasts”.

The so-called Trasandino pipeline, which was created in 1994 and has not operated since 2006, is key to sending Chile the oil that is increasingly produced in the colossal Vaca Muerta formation of unconventional hydrocarbons, whose epicenter is in Neuquén.

The 425-kilometre pipeline connects the deposits in northern Neuquén through the Andes Mountains with the Biobío refinery and the port of Concepción in Chile.

GAS TO CHILE

In the statement, both countries also noted “the importance of continuing to work collaboratively” to increase Argentine natural gas exports to Chile.

Last October, Argentina began firm gas shipments to Chile within the framework of the Gas.Ar plan, launched in 2020 by the Government of Alberto Fernandez and that includes incentives to increase gas production, a mechanism that has managed to boost investments in this segment.

Since its launch, the Gas.Ar Plan contemplated the start in 2021 of gas exports through contracts “firmly” that guarantee that the supply will not be interrupted.

This Monday, Guzmán and Huepe agreed to establish “shortly” the export contracts corresponding to the summer season 2022-2023 and “promote the contractualization of the bilateral gas market for the coming years, contemplating firm exports during the 365 days of the year”.

Both ministers also agreed “advance in exports of liquefied natural gas through firm Argentine exports”.

On the other hand, they promised to implement measures to improve the electrical interconnection between the two countries.

“We are very happy to be able to sign this declaration because it is a concrete manifestation of how we are going to move forward in this integration effort between the two countries in energy matters”Huepe pointed out.

Simultaneously to the meeting between the ministers, meetings were held between Argentine and Chilean companies in the sector, such as YPF -the largest producer of hydrocarbons in Argentina and controlled by the State-, the Chilean state-owned company ENAP, the Chilean Natural Gas Association (AGN) and the oil companies CGC, Tecpetrol, Pampa, Pan American Energy (PAE), Vista, Total, Shell, Pluspetrol, and Wintershall.

Source: Elcomercio

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