Argentina Seeking to Attract Pipeline Investments
The Argentine government on February 8 introduced amendments to oil and gas pipeline concession regulations in an effort to promote competition and investment in the sector.
The amendments, announced by Argentina’s energy secretariat and published in the government’s official gazette, set a framework for attracting investments in pipeline capacity, primarily to help monetise Argentina’s vast Vaca Muerta shale gas resource.
“This new framework simplifies the processes so new actors can invest in infrastructure and improve transportation capacity related to Vaca Muerta,” hydrocarbons undersecretary Carlos Casares said.
Under the new regulations, interests holding pipeline concessions will be able to guarantee firm service capacity to interested shippers, with free negotiation between the parties to set allocation terms, volumes and prices. Concessions will cover initial terms of 35 years, with rules in place to extend them by a further 10 years.