Argentina Energy Generation

Although not yet official, Argentina is reportedly set to launch a tender program aimed at guaranteeing the country’s natural gas supply for the upcoming four years.

The proposed tender system would consist of a four-year block auction mechanism starting in October, which would differentiate offers for the peak winter season and the rest of the year, according to the IAE Argentine Energy Institute.

Unlike previous attempts to prop up natural gas prices, the plan is aimed at maintaining gas production levels in the country.

Prices for offers from gas companies would be set at around $3.40/MMBtu.

These policies, while propping up upstream activity, would mean rising government subsidies in the sector, according to IAE analysts, with the government having to pay the...