LONDON: Argentina will start piping in its first regasified natural gas supplies from Chile next week, helping to reduce imports of diesel for use as power plant fuel during the Southern Hemisphere winter, a source in the Energy Ministry said Friday. The deliveries of 5 million cu m/d will start May 11 and continue for three months, the source said on the condition of not being named.
Argentina will pay $6.90/MMBtu for supplies from the Mejillones LNG regasification terminal in Chile, and $7.20/MMBtu for deliveries from the Quintero terminal, the source said. Argentina and Chile made a preliminary agreement for the deal at the start of the year with the aim of helping Argentina to meet a surge in gas demand during the May-September cold season.
