Argentina’s YPF Seizure Seen Raising LNG Cargo Costs
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Argentina must compete for liquefied natural gas with Asian buyers paying 38 percent more as Repsol SA cancels shipments after the government’s takeover of its YPF SA unit, according to Drewry Maritime Services Ltd.
Argentina will struggle to find replacement cargoes amid a global shortage of LNG, said Navin Thakur, research manager at shipping consultant Drewry in Gurgaon, India. The South American country will have to match the Asian price of about $18 per million British thermal units, he said. Argentina had agreed to buy LNG from Repsol for an average of $13 per million units, Julio De Vido, minister of federal planning, public investment and services, said in a statement May 6.