Insight
Argentina’s gas distribution auctions make progress in market pricing
Report summary
On 14-15 February, Argentina held two auctions for firm gas purchase contracts between suppliers and distribution companies. This marked the first open auction for contract volumes in this category since the current administration embarked on a quest towards creating a more competitive gas market. The industry's general perception of the auction was far more positive compared to last year's auctions for contracted volumes into thermal power plants. Around 10.7 bcm of gas was contracted for April 2019 to March 2020, representing deals valued up to US$1.8 billion. In this insight we analyse the features of the auction, the cost composite supply curves, the volumes yet to be contracted and estimated spot prices for next winter and summer.
Table of contents
- Background
- Final terms of the tender
- Auction results
- Huge step towards market prices
- Nevertheless, challenges remain
Tables and charts
This report includes 8 images and tables including:
- Average prices for distribution companies and payments to producers
- Main features of Resolution SGE 32/2019
- Shape of historical consumption of residential+SGP consumers and the supply mode proposed
- Composite cost curves and volumes awarded (winter volumes)
- Auction summary
- Composite cost curves of volumes offered in MEGSA auctions for distribution companies and CAMMESA
- Contracted volumes and forecasted demand of distribution companies
- Neuquen basin awarded prices and estimated spot prices
What's included
This report contains:
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