Insight
New Argentina’s PlanGas rounds: will it underpin production growth?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Since the first round of the PlanGas.Ar (or Gas Scheme) programme, Argentina has experienced substantial gas production growth. As a result, the transmission infrastructure between Neuquén and Buenos Aires is saturated. To cope with this situation and sustain production growth, the government rushed the construction of the Tratayen-Saliqueló pipeline, which is expected to be concluded the following winter. With construction nearing completion, the government has issued the tender, comprising a round to contract volumes just for the new pipeline. The market is now in a different scenario than at the end of 2020. The strong gas production growth in the past few years, and the potential of unconventional assets, will provide a competition level not seen in other rounds. Accordingly, understanding a competitor’s position will be critical to thriving in the next round.
Table of contents
- Introduction
- The rules’ design forces producers to extend their agreements
- Companies’ ability to quickly ramp up production will define their position in the tender for additional volumes
- A dedicated round for mature assets can revive investment in other basins
- The new rounds are a good sign for the market, but a few uncertainties remain
Tables and charts
This report includes the following images and tables:
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Contracted volumes through the PlanGas.Ar rounds vs. committed productionFeatures of the new PlanGas.Ar roundsAssets’ production vs processing capacity by the end of 2023
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Average production in 2023 by company without additional unconventional dry-gas production minus production commitment from the first and third roundsAssets’ remaining-life breakeven cost (2023)Southern basinsNorthern basins
What's included
This report contains:
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