Conclusions of ARPEL Seminar on Natural Gas and LNG Markets
December 2017. In the framework of the Energy Week organized by OLADE in early December, the Regional Association of Oil, Gas and Biofuels Sector Companies in Latin America and the Caribbean (ARPEL) held the seminar on Natural Gas and LNG Markets, which was sponsored by Compañía Mega, and supported by the Association of Industrial Consumers of Natural Gas of Argentina (ACIGRA) and the Argentine Institute of Oil and Gas (IAPG).
During the seminar, which brought together 100 business executives and professionals of the energy sector, the following topics were addressed: The natural gas scenario in Argentina; regional and global trends of natural gas and LNG; natural gas as industrial and petrochemical raw material; technological trends in the natural gas and petrochemical sector; natural gas and electricity generation, the progress of renewables, competition and complementarity.
The event was attended by Luis Bertrán of the International Gas Union (IGU); Daniel Montamat of the Ministry of Energy and Mining of Argentina; Roberto Ferreira da Cunha of IHS Markit; Mauro Chávez of Wood Mackenzie; Alberto Laverán of Dow Chemical; Alejandro Fernández of Compañía Mega; Ignacio Millán of the Argentine Petrochemical Institute (IPA); Darío Guzmán and Michael Tallman of KBR; Juan Bosch of SAESA Energía; Óscar Ferreño of Ventus Energía; Juan Carrasco of CIER; Mauro Soares of EOS Energía; Miguel Bolinaga of AES Panamá; Marcos Sabelli of APLA; Daniel Bouille of Bariloche Foundation; Andrés Schuschny of OLADE, and Jorge Ciacciarelli of ARPEL.
Below are the main conclusions reached in the seminar “Natural Gas and LNG Markets":
• The natural gas and LNG market is increasingly flexible and liquid, and prices are expected to remain low for a long time, with the impact this has on the competitiveness of the countries of the region.
• The new paradigm of the gas market in Argentina is that strong challenges exist in the development of demand to mitigate the possible scenario of oversupply of natural gas and its negative impact on investment and the development of Vaca Muerta.
• Regional integration is vital for Argentina in order to expand markets and leverage the necessary investments in the upstream sector.
• Flexibility in certain regulations in the Argentine market would allow the development of necessary investments in the midstream sector.
• The petrochemical industry is a demand sector that could provide a strong market for natural gas, but the sector needs a boost and political decision for its development.
• Renewables are still gaining ground for the new electricity demand, but natural gas will continue to offer the necessary firmness and flexibility in the energy system for many years, and it is today the most viable option to gain efficiencies.
• The vision of the energy sector cannot be dichotomous, but should consider the development of all the sources and demand sectors for this to bring economic development to the countries of the region.
The full report of the event will be published on the ARPEL webpage shortly.