Gas Emergency Grips Argentina Despite Vaca Muerta Reserves

Amidst the backdrop of the Vaca Muerta basin, Argentina finds itself in a state of gas emergency that has led to drastic measures being taken by the government. Despite being home to the second largest reserve of unconventional gas in the world, the country is grappling with a challenging situation that has disrupted the supply of gas to various sectors.

The Energy Secretariat’s decision to halt gas supplies to CNG distributors nationwide and industries in major metropolitan areas like Buenos Aires, Rosario, Santa Fe, and Cordoba has sent ripples of concern across the nation. The sudden surge in demand triggered by the plummeting winter temperatures has strained the distribution system to its limits, creating what experts describe as a “perfect storm” of circumstances.

A key factor contributing to the emergency is the unprecedented cold wave that has significantly spiked gas consumption, exacerbating the strain on the distribution infrastructure. Particularly, the newly constructed GPNK gas pipeline, which plays a vital role in transporting gas from Vaca Muerta to the existing network in the central north of the Village, has faced immense pressure due to the surge in demand.

Adding to the challenges is the delay in completing three GPNK compressor stations, a consequence of the interrupted allocations by the government. This setback has effectively slashed the pipeline’s transport capacity from 22 to 11 million cubic meters of gas per day, further impeding the efforts to meet the escalating demand.

In a bid to address the crisis, the government recently approved the purchase of 44 million m3 of LNG from Petrobras, a Brazilian oil company. However, a logistical snag prevented the timely arrival of the LNG shipment from Brazil, thwarting the plan to avert the need to suspend gas supplies to CNG industries and distributors.

The ramifications of the gas emergency are acutely felt by thousands of motorists who rely on the CNG system, with many now finding themselves stranded as a result of the suspension. This development underscores the vulnerability of Argentina’s gas infrastructure in the face of unexpected challenges and underscores the urgent need for comprehensive measures to fortify the distribution network and ensure the country’s energy security.

As the nation grapples with the repercussions of the gas crisis, discussions are underway on how to prevent such emergencies in the future and bolster the resilience of the gas supply chain. The situation serves as a poignant reminder of the intricate balance between energy resources, infrastructure development, and the need for proactive contingency planning in the face of unforeseen circumstances.