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    Argentine Gas Subsidy Changes Provoke Demonstrations

Summary

YPF, Techpetrol both say changes will result in financial losses.

by: Pietro Pitts

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Natural Gas and LNG Latest & Breaking News, Americas, Political, Ministries, News By Country, Argentina

Argentine Gas Subsidy Changes Provoke Demonstrations

Oil and gas sector workers in Argentina joined forces February 5 with union members to show their displeasure with changes to the country’s gas subsidy program, online media outlet Clarin reported.

The assembly of workers was convened by Guillermo Pereyra, general secretary of the oil and gas union for the Rio Negro, Neuquen and La Pampa regions, in response to Argentina’s Energy Secretariat’s decision to modify application of Resolution No. 46.

The resolution places a cap on the country’s gas subsidy and will have a negative impact on investments and operations and potentially generate layoffs.

“We are declaring ourselves in a state of alert related to any future attempts to lay off workers,” the Clarin reported, citing Pereyra’s comments to workers during a speech in Anelo.

Modification of the resolution has already provoked opposition and threats to reduce investments from YPF and Techint’s local unit in Argentina, Techpetrol. Both companies reported last week that the decision would result in operational losses.