Argentina authorizes export of surplus volumes of natural gas

The Argentine government has authorized the export of surplus volumes of natural gas and opened up competition among companies to sign export contracts, official sources reported.

"The government has authorized the export of additional volumes of natural gas so that companies can sell their surplus production once the domestic market is supplied," said Manuel Adorni, spokesperson for the Argentine Presidency, during a press conference.

The measure was adopted after identifying exportable balances, following the granting of preferential marketing rights to ensure domestic supply.

The decision involves granting hydrocarbon companies permits to sign export contracts lasting four years.

Sources from Argentina's Energy Secretariat highlighted that "this is the first time in the last 20 years that multi-year gas export contracts will be made."

According to the Argentine government, the measure aims to maximize the country’s export potential, generate more foreign exchange, and contribute to fiscal surplus.

"The measure is in line with the recent visit of President Javier Milei to Chile, where the focus was on expanding regional integration and identifying a path to increase natural gas exports to the neighboring country," the Argentine Energy Secretariat said in a statement.

Additionally, a few weeks ago, Argentina granted the first authorizations to oil companies to begin exporting natural gas extracted from the colossal unconventional hydrocarbon formation of Vaca Muerta to Brazil.