The Secretary of Energy, Flavia Royonstressed this Friday that the extension of the energy exchange agreement signed with Brazil will allow energy to be imported during the coming winter at “competitive prices”, until the Néstor Kirchner pipeline is completed.
The agreement “allows us to face or foresee a job for the winter of 2023 in which Argentina, with the gas pipeline not yet finishedit will need energy imports at competitive prices,” Royon emphasized this Friday morning in dialogue with Télam Radio.
The The governments of Argentina and Brazil signed this Thursday an extension until December 31, 2025 of the Energy Exchange Memorandum, which will have as its main innovation the implementation of a bilateral payment system in local currencies, while advocating the deepening of energy integration.
“This agreement provides for commercial exchanges, emergency exchanges and exchanges not valued for opportunity, non-commercial and with return,” Royon said.
The agreement, which sets the modalities of exchange in terms of electricity, will allow Argentina to be supplied in the winter season from Brazil and reduce the need to import liquid fuels for generation.
“This is important for Argentina because it allows us to start working on alternatives for firm energy exchanges, that is, non-interruptible for the winter of 2023,” he explained.
In turn, the implementation of payment in local currencies allows avoiding the disbursement of foreign currency andto the fact that “(the payment) can be returned in energy at another time of the year”.
Renewal of the Bilateral Memorandum of Understanding on Energy Exchange 🇧🇷🇦🇷
➡️ is an agreement that establishes modalities for the exchange of electrical energy between both countries, until 2025. pic.twitter.com/3O0bAuyDq7
– Secretary of Energy (@Energia_Ar) November 24, 2022
Agreements with other countries
The official recalled that, in addition to the agreement with Brazil, two weeks ago a similar understanding with Chile through which it was agreed to reactivate bidirectional energy exchanges between both countries through the InterAndes electrical interconnection line.
In this way, Argentina will be able to import up to 80 megawatts (MW) of energy generation from solar plants from Chile, while up to 200MW of thermal generation sources from natural gas can be exported to the neighboring country overnight.
Royon anticipated this Friday, likewise, that the Government is “in conversation” with Bolivia to reach a similar agreement.
In the meantime, towards the future, he pointed out that he will look for “deepen energy integration with Brazil”, being the neighboring country a “market for Argentine gas”.
Finally, Royon highlighted the realization of this type of agreement since, last winter, they even allowed “returning Liquefied Natural Gas (LNG) ships.”
The Secretary of Energy affirmed that Argentina “imported 3,741 gigawatts per hour (GW)”, which he pointed out that “it is a very competitive price in the current context of energy prices.”
This, he stressed, allowed the country to save “almost US$ 800 million.”