14
May
2019

Westbound service: Argentina mulls LNG exports via Chile

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Argentina has aired its desire to hit 37 mtpa (51 Bcm/year) of LNG exports by 2030, with the country’s maiden export project, the 0.5 mtpa Tango FLNG, expected to start operations soon. But with a land-based option expected to be costly as production increases, the cost could be substantially reduced by using existing infrastructure in neighbouring Chile.

Chile’s Pacific coastline offers Argentina potentially competitive access to the premium Asian market, as this would help the Argentinians avoid a voyage around Cape Horn or through the Magellan Strait. But questions linger over the competitiveness of LNG from Chile when compared to established and proposed supply projects. Also standing in the way of this ambitious proposal is the general election in Argentina this year, as a change of guard in Buenos Aires could see the proposal derailed.

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