Will Argentina Create a Surplus in the Global LNG Market?

With the second largest shale gas reserves in the world, Argentina might become a major LNG Exporter (with 3 charts)

Argentina is poised to become an LNG exporter in the next few years as it taps into vast resources from the Vaca Muerta shale formation, the world's second-largest shale gas resources. To this end, maritime LNG company Golar LNG Ltd. (Golar) recently secured a 20-year agreement with Argentina’s energy company Pan American Energy (PAE) to provide a floating liquefied natural gas (FLNG) production facility for the export of around 2.45 million tons of LNG per annum (mtpa).  The project is expected to start  exports by 2027, and it will position the Latin American country as a new LNG player in the international market.  

In this article, we provide an overview of:

• Argentina’s estimated shale gas resources and the significance of the Vaca Muerta shale gas formation;

• Argentina’s gas production, consumption, and trade; and

• Argentina’s LNG investment opportunities and prospects.

Argentina’s Unconventional Gas Resources