Argentina to Almost Triple Gas Purchase Price to Boost Drilling
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Argentina will almost triple natural gas prices to producers to encourage conventional and shale drilling and stem declining output, according to a subsidy plan published in the official gazette.
The government will pay producers $7.50 per million British thermal units, the government said today in a resolution signed by deputy Economy Minister Axel Kicillof and Domestic Trade secretary Guillermo Moreno. The average price paid to producers in 2011 was $2.50 per million Btu, gas-producing province Neuquen’s governor, Jorge Sapag, said in an e-mailed response to questions in September.