State-owned LNG importer Energia Argentina (Enarsa) opened two bids on Monday during a livestream broadcast on its YouTube channel.
Trafigura Argentina, a unit of Trafigura, offered a price of $4.91 per MMBtu, while Natural Energy, a unit of Naturgy, offered $4.95 per MMBtu.
According to Enarsa, the contract award is due today, March 14.
Enarsa launched a tender in early March for the selection of an agent marketer–aggregator for the acquisition of LNG and its commercialization in the domestic market nationwide during the winter period.
The process aims to select an operator that is in charge of importing LNG and market the fuel in the domestic market, through the use of the regasification terminal located in Escobar, the company said.
According to Enarsa, the initiative is part of the government’s resolution that ordered the transfer to the private sector for the import and marketing of LNG during winter.
In this way, for the first time since 2008, the state would stop acting as a direct buyer and intermediary in the purchase of LNG, a role assumed by a private operator selected through a competitive process, it said.
Enarsa said the new scheme aims to introduce competition and efficiency in the process of LNG supply, allowing specialized operators to optimize the business management and logistics for imports to meet seasonal demand for natural gas.
Escobar LNG shipments
Launched in 2011, GNL Escobar (GNLE) is located on the Parana River, about 30 miles outside Buenos Aires.
YPF and Enarsa operate the facility via a 50/50 joint venture.
Excelerate Energy’s 150,900-cbm Expedient FSRU serves the LNG import terminal.
According to Enarsa’s website, the company purchased 27 LNG cargoes for delivery to this facility via four separate tenders last year.
The cargoes were purchased for delivery between March and July.
A unit of UK-based energy giant BP won tenders to provide 20 of these cargoes, while a unit of French energy giant TotalEnergies won tenders to provide seven cargoes.
The shipments, worth approximately $698 million, were sourced from Trinidad and Tobago’s Point Fortin LNG facility (15 cargoes) and the US (11 cargoes).
Argentina imports LNG despite its vast Vaca Muerta shale gas resources.
YPF and its partners are working on the Argentina LNG export project, based on these resources.
Argentina’s Southern Energy, owned by Pan American Energy, YPF, Pampa Energia, Harbour Energy, and Golar LNG, took a final investment decision on the second floating LNG production unit in August last year.
SESA will install two converted FLNGs owned by Golar LNG in Argentina.
