BP's Pan American targets Asian customers for Argentine LNG (updated)

Pan American Energy

18/09/2024 20:09

* 
      LNG vessel eyed for Argentine project to begin output in
2027
    

        * 
      New regulatory framework secures 30 years of LNG exports 
    

  
 (Adds context, details in paragraphs 3-7)
    By Marianna Parraga and Georgina McCartney
       HOUSTON, Sept 18 - BP's Pan American Energy  BPPAE.UL 
is looking to negotiate contracts with Asian consumers to
allocate liquefied natural gas from a floating project in
Argentina, Rodolfo Freyre, a company vice president, told the
GasTech conference on Wednesday.
    Pan American and marine infrastructure company Golar LNG
 GLNG.O  in July signed a contract to deploy in
Argentina a vessel that will be used to produce LNG off the
South American country's coast, starting in mid-2027.
    The vessel currently has a contract to operate in Cameroon,
which will end in 2026, Freyre said. Pan American's floating
project could inaugurate Argentina's LNG exports. 
    "We saw this opportunity that Golar had... so we started
working hard with them. And we actually acted pretty quickly to
try to sign a contract for a 20-year deal, expecting to have LNG
production maybe by 2027," Freyre said.
        Pan American set up talks this week in Houston with
potential LNG buyers from several Asian countries, company
sources said. A delegation from rival Argentine producer YPF
 YPFDm.BA  last month traveled to India also seeking to
negotiate LNG contracts, the company CEO said last week.
  
    Oil and gas producers YPF, Petronas  PETRA.UL , Tecpetrol
and Pan American are progressing three projects that would turn
Argentina, which sits on the world's second largest shale gas
reserves, into a LNG exporter in the coming years. The three
will require more than $60 billion in total investment. 
        The projects are expected to be driven by new regulation
proposed by President Javier Milei's administration for large
investments, including those to develop LNG.
  
        "The RIGI (Promotional Regime for Large Investment) is
basically a promotional benefit for stability. We worked a lot
with the government to incorporate these type of things to make
these projects feasible. Without it, I mean, I would say that
there's no LNG, period," Freyre said. 
  
        The law is expected to secure LNG exports for up to 30
years without policy changes that could create obstacles, he
added.
  
        Milei's economic reforms have already reduced
Argentina's 
    energy subsidies
     by $2.7 billion this year while leaving an energy trade
surplus of almost $3 billion, compared to deficits in previous
years, Energy Secretary Eduardo Rodriguez Chirillo said in
Houston last week.
  
        
  

 (Reporting by Marianna Parraga and Georgina McCartney in
Houston
Editing by Peter Henderson and Lisa Shumaker)
 ((Georgina.McCartney@tr.com))