Vaca Muerta shale formation propels Argentina closer to energy self-sufficiency, analysts say
Vaca Muerta, a vast unconventional oil reserve, is pivotal for Argentina to cut costly imports and bolster its economy. Oil output there climbed 26% year-on-year to more than 447,000 barrels per day in March, Rystad estimates showed.
New drilling increased only marginally, Rystad said, partly as existing pipelines were unable to handle more volume - a constraint expected to ease with an April pipeline expansion.
Production of dry gas – natural gas primarily composed of methane after heavier liquids and water are removed – in the first quarter jumped to 2.1 billion cubic feet per day, up 16% from a year ago.
"Gas is stealing the spotlight," said Radhika Bansal of Rystad Energy, noting Argentina "could soon become a pivotal player in global gas supply."
The burgeoning output is key to Argentina's plan to meet LNG demand abroad, Rystad said.
Initiatives underway include the Southern Energy (SOU.V), opens new tab LNG project, which plans two floating LNG vessels with a combined 6 million metric tons per annum capacity, with first output targeted for late 2027.
State-owned YPF (YPFDm.BA), opens new tab is also making headway on larger projects with partners Shell (SHEL.L), opens new tab and Eni (ENI.MI), opens new tab, with Rystad projecting them to reach full capacity by the late 2030s.
Norwegian energy firm Equinor (EQNR.OL), opens new tab also reversed an earlier decision to exit Vaca Muerta, citing improved infrastructure and export viability, which Rystad said signals renewed investor confidence in the zone.
Vaca Muerta is attracting sizeable investments, Rystad argued, adding that in the first quarter, merger and acquisition deals in the formation accounted for 43% of all upstream, or oil and gas exploration and production, transactions across Latin America.
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Telegraph
3 hours ago
- Telegraph
Milei's bet on China threatens an ugly fallout with his idol
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Telegraph
a day ago
- Telegraph
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Reuters
a day ago
- Reuters
Qatar threatened to cut EU LNG supplies over sustainability law, letter shows
BRUSSELS, July 26 (Reuters) - Qatar has threatened to cut gas supplies to the European Union in response to the bloc's due diligence law on forced labour and environmental damage, a letter from Qatar to the Belgian government, seen by Reuters, showed. Qatar is the world's third-largest exporter of liquefied natural gas (LNG), after the United States and Australia. It has provided between 12% and 14% of Europe's LNG since Russia's 2022 invasion of Ukraine. In a letter to the Belgian government dated May 21, Qatari Energy Minister Saad al-Kaabi said the country was reacting to the EU's corporate sustainability due diligence directive (CSDDD), which requires larger companies operating in the EU to find and fix human rights and environmental issues in their supply chains. "Put simply, if further changes are not made to CSDDD, the State of Qatar and QatarEnergy will have no choice but to seriously consider alternative markets outside of the EU for our LNG and other products, which offer a more stable and welcoming business environment," said the letter. A spokesperson for Belgium's representation to the EU declined to comment on the letter, which was first reported by German newspaper Welt am Sonntag. The European Commission also received a letter from Qatar, dated May 13, a Commission spokesperson told Reuters, noting that EU lawmakers and countries are currently negotiating changes to the CSDDDD. "It is now for them to negotiate and adopt the substantive simplification changes proposed by the Commission," the spokesperson said. Brussels proposed changes to the CSDDD earlier this year to reduce its requirements - including by delaying its launch by a year, to mid-2028, and limiting the checks companies will have to make down their supply chains. Companies that fail to comply could face fines of up to 5% of global turnover. Qatar said the EU's changes had not gone far enough. In the letter, Kaabi said Qatar was particularly concerned about the CSDDD's requirement for companies have a climate change transition plan aligned with preventing global warming exceeding 1.5 celsius - the goal of the Paris Agreement. "Neither the State of Qatar nor QatarEnergy have any plans to achieve net zero in the near future," said the letter, which said the CSDDD undermined countries' right to set their own national contributions towards the Paris Agreement goals. In an annex to the letter, also seen by Reuters, Qatar proposed removing the section of CSDDD which includes the requirement for climate transition plans. Kaabi is also chief executive of QatarEnergy ( Qatar Energy gas has long-term supply contracts with major European companies, including Shell (SHEL.L), opens new tab, TotalEnergies ( opens new tab and ENI ( opens new tab.
