Excelerate Energy LP, The Woodlands, Tex., and Transportadora de Gas del Sur SA (TGS), Buenos Aires, have agreed to study the technical and commercial viability of a liquefaction project in Bahia Blanca, Argentina, to liquefy and export natural gas during the summer season.
Argentina currently imports LNG through two floating import terminals, particularly during the country’s peak winter season. The development of Argentina’s shale gas reserves resulted in a potential excess of gas during the summer months.
“Given the high seasonality of Argentina’s natural gas consumption, LNG has played a critical role in meeting the country’s energy demands,” stated Excelerate’s Chief Commercial Officer Daniel Bustos. “This project will significantly enhance Argentina’s capacity to maximize the use of local resources by allowing a more predictable development of shale gas production while reducing the overall costs of importing LNG.”
The study is expected to be completed by yearend, at which time the companies will share results with government and industry officials and decide on further actions.
Currently, 100% of LNG imported and regasified into Argentina is through Excelerate's two floating storage and regasification units. The company developed South America’s first LNG import terminal in 2008 in Bahia Blanca, following with the second terminal in 2011 in Escobar, Argentina.
TGS is carrying out a project aimed at the transportation and conditioning of gas derived from the Vaca Muerta basin in Neuquen, Argentina.