Bankrolling the Vaca Muerta

Buenos Aires will pay out billions to keep the sector afloat despite Argentina’s stark economic crisis

Argentina will spend more than $5bn over the next four years as part of a new government initiative to support the country’s gas sector and develop its prolific Vaca Muerta shale reserves. The scheme aims to cut gas imports by 589.75mn ft³/d (16.7mn m³/d) through to 2023, lessening the financial burden on Argentina and improving national ­energy security. The government will spend $1.49bn on the gas subsidy plan in 2021 and then over $1bn per year until 2025. Gas production of c.2.47bn ft³/d will receive a subsidy, although the government will only cover the difference between the price realised when the gas is auctioned and a ceiling price of $3.70/mn Btu. “In the past, we have seen how gas