Chilean Gas Imports From Argentina Heading Higher
Argentina, which initiated exports of natural gas to Chile in late 2018, shipped 356.1mn m3 to its neighbour last year, while exports in January this year reached 93.7mn m3, online Chilean media outlet Rio Negro reported on March 7.
“In general terms, there is a growing import trend,” the report said, citing Chilean energy minister Susana Jimenez.
Argentine gas exports to Chile, a regional copper producing powerhouse, has allowed the country to reduce its imports of LNG, meet demand from electricity generators and reduce the use of firewood in certain areas of the country.
Chilean LNG imports that compete with Argentine gas fell 14% between October and December 2018 compared to year earlier period, despite some clauses that don’t always allow Chile to replace LNG imports with supply from Argentina, Jimenez said.
Much of the LNG displaced by Argentine gas is primarily due to the huge difference in prices. “The price of Argentine gas is approximately half the value of gas imported in the form of LNG, before adding on regasification costs,” said Jimenez.