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Released May 05, 2023 | SUGAR LAND
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Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina registered strong oil and gas output in March as non-conventional production continues to grow and the country aims to exploit new sources of hydrocarbons.
In March, Argentina produced some 641,000 barrels of oil per day (BBL/d), representing an increase of 0.5% compared with February and 12.1% higher than the same time last year. Meanwhile, natural gas output during March stood at 129 million cubic meters per day (m3/d), about 2.7% higher year on year.
Hydrocarbon production has been on the rise due to the developments in Vaca Muerta, the world's second-largest shale gas area and the fourth-largest non-conventional oil reservoir. Over the last few years, international and local energy companies have invested billions in this area to produce higher volumes.
"The growth in conventional and unconventional oil production in our country has been almost uninterrupted since May 2020," said Flavia Royon, Argentina's energy minister.
In March, Vaca Muerta's production represented 47% of the country's oil output and 41% of the natural gas volumes. Shale output, for its part, accounted for 305,600 BBL/d of oil and 71.9 million m3/d of the total volumes produced by the country.
As production continues to climb, with a goal to reach over 1 million BBL/d in the next years, thanks to the output of Vaca Muerta, Argentina needs to focus on the development of midstream infrastructure.
This bottleneck, which is currently in the transportation of hydrocarbons from remote areas to the export terminals or refining centers, has translated into the construction of pipelines such as the Nestor Kirchner gas pipeline or Sierras Blancas-Allen oil pipeline, which was inaugurated in February. Industrial Info is tracking more than US$6.5 billion worth of projects related to Nestor Kirchner. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports on the Nestor Kirchner pipeline.
Despite its success with shale production, Argentina is also looking to expand its offshore volumes of hydrocarbons through the development of the Fenix natural gas project. Last week, Royon was part of a public process supporting the development of this offshore platform, which is expected to add 10 million m3/d of natural gas to the country.
"The production of Fenix will mean an increase in the supply and availability of immediate gas for Argentina, from the beginning of 2025, which will translate into highly significant savings in importing LNG and gas from Bolivia," Royon said.
TotalEnergies SE (NYSE:TTE) (Courbevoie, France), Pan American Energy (Buenos Aires, Argentina) and Wintershall (Ludwigshafen, Germany) are developing the project, and it is expected to produce its first natural gas by 2025. Fenix is located in Argentina's Tierra de Fuego province, where some of the world's most southern hydrocarbon platforms are located.
Due to its location and environmental impact, the Argentine government is stressing the importance of reducing emissions in Fenix. According to a government statement, Fenix will release on average about five hours of Argentina's total emissions each year until 2041, which represents less than 1% of global emissions. Subscribers to the GMI Database can click here for Fenix project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
In March, Argentina produced some 641,000 barrels of oil per day (BBL/d), representing an increase of 0.5% compared with February and 12.1% higher than the same time last year. Meanwhile, natural gas output during March stood at 129 million cubic meters per day (m3/d), about 2.7% higher year on year.
Hydrocarbon production has been on the rise due to the developments in Vaca Muerta, the world's second-largest shale gas area and the fourth-largest non-conventional oil reservoir. Over the last few years, international and local energy companies have invested billions in this area to produce higher volumes.
"The growth in conventional and unconventional oil production in our country has been almost uninterrupted since May 2020," said Flavia Royon, Argentina's energy minister.
In March, Vaca Muerta's production represented 47% of the country's oil output and 41% of the natural gas volumes. Shale output, for its part, accounted for 305,600 BBL/d of oil and 71.9 million m3/d of the total volumes produced by the country.
As production continues to climb, with a goal to reach over 1 million BBL/d in the next years, thanks to the output of Vaca Muerta, Argentina needs to focus on the development of midstream infrastructure.
This bottleneck, which is currently in the transportation of hydrocarbons from remote areas to the export terminals or refining centers, has translated into the construction of pipelines such as the Nestor Kirchner gas pipeline or Sierras Blancas-Allen oil pipeline, which was inaugurated in February. Industrial Info is tracking more than US$6.5 billion worth of projects related to Nestor Kirchner. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports on the Nestor Kirchner pipeline.
Despite its success with shale production, Argentina is also looking to expand its offshore volumes of hydrocarbons through the development of the Fenix natural gas project. Last week, Royon was part of a public process supporting the development of this offshore platform, which is expected to add 10 million m3/d of natural gas to the country.
"The production of Fenix will mean an increase in the supply and availability of immediate gas for Argentina, from the beginning of 2025, which will translate into highly significant savings in importing LNG and gas from Bolivia," Royon said.
TotalEnergies SE (NYSE:TTE) (Courbevoie, France), Pan American Energy (Buenos Aires, Argentina) and Wintershall (Ludwigshafen, Germany) are developing the project, and it is expected to produce its first natural gas by 2025. Fenix is located in Argentina's Tierra de Fuego province, where some of the world's most southern hydrocarbon platforms are located.
Due to its location and environmental impact, the Argentine government is stressing the importance of reducing emissions in Fenix. According to a government statement, Fenix will release on average about five hours of Argentina's total emissions each year until 2041, which represents less than 1% of global emissions. Subscribers to the GMI Database can click here for Fenix project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
