Argentina Begins Privatization of Oil & Gas Company Enarsa

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina is beginning the privatization of Energia Argentina (Enarsa), a state-owned company that transports natural gas and 86% of domestically consumed electricity. The privatization "will be carried out by separating the activities and assets of each of its business units," according to the energy ministry.

Enarsa was founded in 2004 with the objective of exploiting oil and gas. However, its role has shifted to become a key natural gas and energy transporter, as well as a key power producer.

The privatization is part of President Javier Milei's policy to sell state energy companies and attract international private investments to Argentina. In January, the government announced the sale of Impsa, the nation's metallurgical company, marking the first privatization under Milei's administration.

Enarsa is Argentina's largest local natural gas buyer. It purchases natural gas to transport it through its vast pipeline networks, which include the Perito Moreno Gas Pipeline (previously known as the Nestor Kirchner gas pipeline), the Mercedes-Cardales Gas Pipeline and the Northern gas pipeline reversal.

The Perito Moreno and Northern gas pipeline reversal were major infrastructure projects launched under the previous administration. These projects aim to distribute Vaca Muerta's growing gas production throughout Argentina and into Bolivia.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Database can read detailed profiles on the Perito Moreno and Mercedes-Cardales pipelines. Subscribers to Industrial Info's GMI Project Database can learn more about the Northern gas pipeline reversal in a detailed project report.

Overall, Enarsa operates and maintains almost 3,200 kilometres of natural gas pipelines and three natural gas compression plants across its network.

The company also imports LNG, which is regasified through a contracted vessel in Escobar, Buenos Aires, and then transported through the company's network. Enarsa then sells the gas to other distributors, who sell it to customers.

Enarsa also is a key electricity player in Argentina. It produces 8% of the nation's power through its Manuel Belgrano and San Martin thermal power plants, each with a capacity of 865 megawatts (MW). Subscribers can learn more from detailed profiles of the Manuel Belgrano and San Martin plants.

More importantly, Enarsa transports 86% of the electricity consumed across Argentina, including its stakes in Transener and Transba. The company operates more than 15,400 kilometres of 500-kilovolt lines and 60 transformer stations.

"The measure seeks to improve service, foster competition, and guarantee real and sustainable prices for all Argentines," reads the ministry's statement. "The private sector can not only do this better, but is also the natural engine of investment, employment and innovation."

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