CG/LA Infrastructure's InfraBlog
PFI Issue 500 – March 13, 2013
Argentina, which has massive amounts of shale gas, could attract investment to develop this natural resource, said Andres Gluski, president of AES Corp. Gluski, a speaker at the CG/LA Global Infrastructure Leadership Forum in New York, said Argentina had the third-largest recoverable amount of shale gas reserves globally, more than 774trn/cf. China is first with 1.2quad/cf and the US second with 862trn/cf.
Gluski said Vaca Muerta (Dead Cow) in Neuquén Province was a “world class” resource, and the oil and gas infrastructure was already in place in Neuquén, which is in the central part of the country and on the Chilean border. To extract the gas, developers have to attract investment as well as deal with water and environmental problems, including minor tremors.
Argentina’s continuing economic woes remain a barrier to investment, but Gluski still said the country’s shale reserves could be developed.
“We would have to see the right price. We need bigger prices from coal,” he said. Gluski said all the problems could be overcome. Today, Argentina is a net importer of gas, though it used to export gas to countries such as Chile. he said that if Argentina developed this shale, “it could change Latin America”.
Later, in an explanatory email to PFI, Gluski said: “Argentina could become a net exporter of gas to places like Brazil and Chile. This would look different from today. With Argentina as an exporter of relatively cheaper gas, the region would look more like it did in the 1990s.”
Latin America Reporter
Project Finance International
Reuters Professional Publishing