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    Argentina Holds First Electronic Gas Market Auction

Summary

Second auction planned for today.

by: Pietro Pitts

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Argentina Holds First Electronic Gas Market Auction

Argentina held its first electronic gas market auction for the purchase of natural gas by distributors, the country’s energy secretariat said February 14.

The average gas price at the auction was $4.62/mn Btu for annual gas supply of 14.3mn m3/day during the summer period and about 35.7mn m3/day during the winter period. The auction covered 96% of the demand requested by the participating distributors.

Prior to the auction, the secretariat had estimated that the distributors would request up to 14.9mn m3/day for the summer period and 37.3mn m3/day for the winter period.

Contract prices agreed during the auction will be converted into Argentine pesos according to an exchange rate established by Argentina’s national gas regulator Enargas for the entire seasonal period.

The auction established a price for gas from the Neuquina, Golfo San Jorge, Santa Cruz Sur and Tierra del Fuego basins. Another auction is planned for February 15 for gas from the northwestern basin, the secretariat said.