Argentina readies to join LNG exporters club with maiden cargo (updated)

EXMAR NV

20/05/2019 16:17

(Adds context on imports, shale production)
    LONDON, May 20 (Reuters) - Argentina is about to export its
first liquefied natural gas (LNG) cargo from a new floating
facility, marking a milestone for its energy sector boosted by
rising gas production from its large Vaca Muerta shale region.
    State energy firm YPF is believed to be offering a partial
LNG cargo from FLNG Tango, the liquefaction vessel off Bahia
Blanco, two LNG trading sources said on Monday. One source said
the cargo was on a free-on-board (FOB) basis for prompt loading.
    FLNG Tango, owned by Belgian shipping company Exmar
 EXMR.BR , arrived in Bahia Blanca in February.
    Argentina will become the 21st country to export LNG. It has
long bought LNG, alongside buying pipeline gas from neighbouring
countries and producing its own, to boost supplies especially
during winter.
    But rising output from Vaca Muerta, one of the world's
largest reserves of shale oil and gas, helped it reduce LNG
imports by over 20 percent last year to 2.6 million tonnes,
according to industry group GIIGNL.
    The new exports do not mean Argentina will cease importing
LNG; energy firm Integracion Energetica Argentina (IEASA),
formerly known as ENARSA, has issued buy tenders for LNG cargoes
for delivery throughout May to September.  urn:newsml:reuters.com:*:nL5N21Y3ME
    The country needs billions of dollars in investment into the
construction of pipelines, storage terminals and other energy
infrastructure to fully benefit from its shale resources.
 urn:newsml:reuters.com:*:nL1N20Y1GE 
    In many countries with a fast-developing energy industry,  
bottlenecks and price moves can mean that some regions are left
energy poor while others export. Major LNG exporter Australia,
for example, is seeking to import LNG soon.  urn:newsml:reuters.com:*:nL3N2030GN 

 (Reporting by Sabina Zawadzki and Ekaterina Kravtsova; Editing
by Toby Chopra and Mark Potter)
 ((sabina.zawadzki@thomsonreuters.com; +44 207 542 4051;))