On June 3, the second installment of the series of digital dialogs took place within the framework of the Latin America & Caribbean Gas Conference, dealing with “Vaca Muerta: Investment and energy policies to accelerate development.”

This series is organized by IGU (International Gas Union), Olade (Latin American Energy Organization) and ARPEL, with the support of Energy Net. On this occasion, the Argentine Oil and Gas Institute (IAPG) also contributed to the event.

The panel was made up by Verónica Tito, Legal Advisor at the Undersecretary of Hydrocarbons for the Secretariat of Energy; Ceferino Ángel Di Camillo, Commercial Planning Manager of Tecpetrol; Gabriela Aguilar, General Manager Argentina and VP South America of Excelerate; Pablo Erias, Commercial Manager of TGN; and Patricio Da Re, Manager of Strategy, Business Development and Participated Management, G&E Vice-Presidency of YPF

The moderator was Jorge Ciacciarelli, Independent Consultant and former Executive Secretary of ARPEL.

The main topic of the webinar were the existing alternatives to promote the development of Vaca Muerta. Vaca Muerta has proven to be an increasingly competitive field, where regional integration―mainly with Chile, Bolivia and Brazil―plays a key role to further boost its development. With this purpose in mind, concrete and feasible options were discussed for all stakeholders to examine more deeply. On the other hand, integration to global markets through LNG will be key in the medium and long term.

The panelists welcomed the Gas Plan (Decree 892/2020), as it provides stability and predictability to the market. According to them, the main challenges in the medium term are the transport capacity, the decline in Bolivia’s production, and the development of new markets.

Regarding transport capacity, two concrete options were presented: one to reinforce the transport system between Vaca Muerta and the central and northern region of Argentina, even considering the possibility of injecting gas into the Bolivian system, while the other is an option through the south (Bahía Blanca) to reach Greater Buenos Aires, the coastal zone, and the potential export to Brazil. These works would make it possible to reinforce domestic transport, replace natural gas imports and think of new regional integration schemes such as exports to Brazil via Bolivia.

In turn, the discussion turned to the role of LNG as a supplier of flexibility in winter peaks and the possibility of exporting LNG in an expanding market around the world, but mainly in Brazil.

On the other hand, new market options were considered, such as LNG for land and river-sea transport, highlighting the studies being carried out in the waterway and the development of bunkering, a market that may grow significantly at a global level.