On November 16, 2009 the new program, reported by El Cronista newspaper and later confirmed by the Planning Ministry, would allow gas companies to sell excess supplies at above market prices.
Cronista said that the Energy Secretariat expects the new plan to pull investment totaling about $900 million, though the Planning Ministry couldn’t confirm this.
Apache Corporation (Apache) has recently received grant to sell natural gas at higher-than-normal rates under the Argentine government’s gas plus program. Apache has received approval for the second time so far in 2009 and the company has several approval requests in the pipeline.
Under the plan, Apache will begin selling 10 million cubic feet per day of natural gas to Cammessa, Argentina’s wholesale power-market regulator.
Commencing in January 2010, Apache will sell the gas for $4.10 per million British thermal units for one year. The gas will come from the Guanaco and Ranquil-Co fields in Neuquen province.
Previously, Apache was given grant to sell 50 million cubic feet per day of gas from two fields in the provinces of Neuquen and Rio Negro. That gas will sell for $5 per million BTU beginning in 2011.
