Kallanish Energy

Argentina’s President Alberto Fernández has launched a three-year promotion plan for Argentine gas production, highlighting the importance of public-private partnership.

The plan is aimed at encouraging investments, boosting domestic production from the Vaca Muerta shale play to satisfy local demand, replace imports and support employment.

Speaking at an event in the Loma Campana field, in the Neuquén province, Fernández said “this gas plan calls on the players in the hydrocarbon markets to trust investment, to produce more and to give Argentina the gas that Argentines need to live.”

Argentina’s President Alberto Fernández -oilandgas360The government hopes the plan will replace 18 billion cubic meters (Bcm) of imported gas with domestic production, through investments of $5 billion by the producing companies.

“We start the hydrocarbon economy again by promoting gas production, and I am sure that we will understand how important it is for the State to take the lead when the economy is paralyzed and to partner with businessmen, workers to convert all this in the dream of living in Argentina that we deserve, ” he added.

Details on the incentives weren’t disclosed in the energy ministry’s statement.

Earlier this year, the government had suggested that producers will need to commit to maintaining or increasing production at 2020 levels. They must also prioritize domestic supply over exports during the peak winter season.

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