Argentina’s state-controlled energy firm YPF has chosen BP to supply the bulk of its liquefied natural gas (LNG) requirements in 2014 and 2015 following a major recent tender.
Argentina launched its annual tender in September to secure approximately 5.557 million t of LNG over the two year period to help cover its energy needs.
BP is to supply 40 of the 48 cargoes sought by YPF for delivery into the Bahia Blanca import terminal. Gazprom Marketing and Trading is set to bring in a further five cargoes to the terminal, while Norway’s Statoil will deliver the final three.
Argentina will pay approximately US$ 15 per million British thermal units (mmBtu) for deliveries in 2014, and a premium of around US$ 10/mmBtu above the US Henry Hub gas price for deliveries in 2015.
The state-run firm also selected Spain's Gas Natural Fenosa (GNF) to deliver around 2.7 million t of LNG into the country's other terminal at Escobar on the Parana River. The award was granted despite a ruling last week that banned GNF from participating in the tender due to a potential conflict of interest.
Fuel imports have been growing in Argentina due to a persistent fall in local production and an increase in demand, especially for gas.
Argentina's fuel imports rose 31.9% in August 2013 from the same month last year. Led by LNG purchases, imports totalled US$ 942 million, according to Argentine government data.
Edited from various sources by Katie Woodward
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