Argentina’s gas distribution auctions make progress in market pricing

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.