Fuel mix (fossil fuels vs renewables)
In 2020 Argentina continued to derive more than three quarters of its total energy supply from fossil fuels. Natural gas contributed 59% (up from 54.90% in 2019), followed by oil (27%, down from 32.81%) in 2019). Nuclear energy (4%), hydropower (3%) and coal (1%) each made much smaller contributions to the energy matrix, along with biofuels, wind and solar.[1][2]
Fossil fuels account for nearly two thirds of Argentina's electrical generation and installed capacity, with renewables (mostly hydro) contributing roughly one third, and nuclear power making up the difference.[2][3]
Argentina's renewable energy act (Law 27191), passed in 2015, pledges to source 20% of energy from renewables by 2025.[4]
Greenhouse gas emissions targets
As of 2020, Argentina's per capita CO2 emissions from fuel combustion (3.4 tons annually) were among the highest in Latin America and the Caribbean, though only ranking 48th globally.[5] The country's NDC (Nationally Determined Contribution) plan released in December 2020 called for a 26% reduction in GHG emissions by 2030, compared to levels agreed upon in 2016[6][7]; in October 2021, Argentina submitted a revised NDC that increased its proposed reduction to 27.7%.[8] Argentina also pledged to release long-term emissions targets (through 2050) in time for the Glasgow COP 26 summit in November 2021.[7] However, Argentina's government failed to release a long-term emissions strategy at the COP 26 meeting and declined to join 50 other countries in pledging to abandon coal-fired power in the coming decade, opting only to sign on to voluntary agreements calling for net zero deforestation and a 30% decrease in methane emissions by 2030.[9]
Government energy agencies & other key players
National energy agencies
Argentina's Secretaría de Energía, a sub-secretariat of the Ministerio de Economía, is the Argentine government agency in charge of energy policy.
Energía Argentina SA is the state-owned energy agency responsible for the production, transport, and trade of petroleum, natural gas, and electricity.
Permitting agencies
MAyDS (Ministerio de Ambiente y Desarrollo Sostenible) is the Argentine environmental authority responsible for granting licenses for new power generation projects.
Regulatory agencies
Enargas is responsible for regulation and control of natural gas transmission and distribution in Argentina.
ENRE (Ente Nacional Regulador de Electricidad) is the regulatory authority that manages the generation, transmission and distribution of electricity nationwide.
Electric utilities
IEASA (Integración Energética Argentina SA) is Argentina's largest electric utility company.
National oil company
YPF (Yacimientos Petrolíferos Fiscales), Argentina's state-run petroleum company, is involved in conventional and unconventional oil and gas exploration, production, and distribution.
Leading energy companies
Pampa Energía, AES and Grupo Albanesi are among the largest private energy companies operating in Argentina.
Electricity usage
Installed capacity
As of 2020, Argentina's installed capacity totaled roughly 42 GW (up from 37.9 GW in 2019), with fossil fuels accounting for 60.46% of the total, followed by hydro at 27.04%, wind at 6.25% (up from 4.06% in 2019), and solar at 1.81% (up from 1.1% in 2019).[2][3]
Production
Argentina generated roughly 131 TWh of electricity in 2020, sourced 64.65% from fossil fuels (vs. 61.75% in 2019), 18.47% from hydro (vs. 27.25% in 2019), 8.13% from nuclear (vs 6.11% in 2019), 7.18% from wind (vs. 3.85% in 2019), and less than 2% from solar and biomass energy.[2][3]
Consumption
Argentina consumed 129 TWh of electricity in 2020.[1]
Coal in Argentina
Domestic Production
Argentina is a relatively minor producer of coal, and domestic production has steadily declined over the past decade.[10] Production at the country's largest coal mine, Río Turbio Mine, has long struggled to meet promised production targets, while the mine and the adjacent, long delayed Río Turbio power station have been plagued by mismanagement, cost overruns, and allegations of corruption.[11]
Consumption
Argentina consumed 973,000 metric tons of coal in 2020, ranking 74th globally.[10]
Imports
Argentina imported 987,000 metric tons of coal in 2020.[10]
Oil & Natural Gas in Argentina
Domestic Production
Argentina's 38.6 billion cubic meters of natural gas production in 2021 made it the largest natural gas producer in Latin America.[12] In 2021, Argentina was Latin America's fifth largest oil producer (after Brazil, Mexico, Colombia and Venezuela), with production totaling 627,000 barrels per day.[12]
After suffering year-over-year declines in oil (-5.3%) and gas (-8.6%) production in 2020[13], Argentina's national oil company YPF saw a resurgence in activity in 2021.[14] Development is heavily focused on the country's unconventional Vaca Muerta deposits, where oil production was projected to grow by as much as 50% between 2021 and 2023.[15] Unconventional oil and gas development has increased rapidly in the decade since Vaca Muerta's discovery, representing 32.8% of Argentina's oil production and 47.6% of gas production in 2021 and helping to compensate for a steady decline in conventional production.[14][16]
Consumption
In 2021 Argentina consumed 45.9 billion cubic meters of natural gas (second only to Mexico among Latin American and Caribbean nations). The country ranked third regionally (behind Brazil and Mexico) in total oil consumption in 2021 (598,000 barrels per day).[12]
Reserves
The 8.6 million-acre Vaca Muerta formation in Argentina's Neuquén Basin holds some of the world's largest non-conventional shale oil and gas deposits, with technically recoverable oil and natural gas resources estimated at 16 billion barrels and 308 trillion cubic feet, respectively.[16] The Neuquén Basin accounted for 63.53% of Argentina's proved natural gas reserves and 40.94% of proved oil reserves as of 2020.[14] Other important deposits are located in the Golfo de San Jorge (54.38% of proved oil reserves) and the Austral Basin (24.2% of proved natural gas reserves).[14]
Imports & exports
Despite record natural gas production at Vaca Muerta, Argentina has struggled to attain energy self-sufficiency, in large part due to insufficient domestic pipeline capacity.[17] Argentina continues to import natural gas via pipeline from Bolivia under a 20-year contract valid through 2026, though declining Bolivian supplies have resulted in reduced import volumes.[18][19] These Bolivian imports have historically been supplemented by intermittent imports of LNG through the Escobar and Bahía Blanca terminals, and regasified LNG from Chile.[20]
In 2018, after a decade-long lull, Argentina resumed pipeline exports of natural gas to Chile via the Nor Andino, GasAndes and Pacífico pipelines, and briefly initiated LNG exports from the Tango FLNG Terminal in Bahía Blanca.[16][21][22] However, domestic supply from Vaca Muerta remains inconsistent, and imports continue to play a key role in meeting domestic demand, especially during the winter months.[20][23][24][25]
Transport
Spanning more than 20,000 kilometers from the Bolivian border to Tierra del Fuego, Argentina's network of natural gas pipelines is the most extensive in Latin America and the sixth largest in the world.[26] Key elements of the domestic supply network include the Norte, Noreste, Centro Oeste, Neuba I and Neuba II, Cordillerano-Patagónico, and San Martín pipelines. These are supplemented by four international pipelines crossing the Andes to Chile.
Proposed new projects
In 2022, the Argentine government authorized Energía Argentina to proceed with the development of the Néstor Kirchner gas pipeline[27], a 1025 km, 44 MMm3/d project intended to relieve domestic gas transmission bottlenecks and create new export markets for Vaca Muerta's non-conventional hydrocarbons. Previous efforts to build a high capacity pipeline from Vaca Muerta had been scuttled due to financial considerations, competition from LNG imports and Brazilian offshore gas development, and insufficient commitment from key players.[22][28][29][30][31]
Renewable Energy in Argentina
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Argentina's oil and gas sector benefits from government subsidies, posing competitive challenges for renewable energy development.[32] Both the national government and foreign investors have favored continued development of fossil fuel resources or environmentally disruptive mega-projects over smaller-scale renewables like wind and solar.[33] As of 2020, less than 10% of Argentina's energy came from renewables, well shy of the national goal of 20% by 2025 established under Argentina's renewable energy act (Ley 27.191).[34]
Current renewable energy initiatives include Fortescue Metals' proposed $8.4 billion wind-powered green hydrogen project in Río Negro state[35] and the controversial US$5 billion, 1310 MW Condor Cliff and La Barrancosa projects, Argentina's first large-scale hydroelectric ventures since the Yacyretá Dam in the 1990s.[33][36]
As of 2021, Argentina has been actively seeking Chinese investment to enhance their renewable energy sector despite not formally being part of the Belt and Road Initiative.[37] In 2022, Argentina announced China would fully fund a nuclear power plant worth $8.3 billion.[38][39]
Lithium
Argentina is a leading producer of lithium, a key element in electric vehicle batteries; the country held an estimated 11% of global lithium reserves as of 2019.[40] Argentine mining companies are enhancing lithium production in order to meet global demand.[41][42][43] Argentine lithium businesses are seeking market regulation in order to promote confidence and ensure that a country rich in mineral resources does not have "poor provinces."[44]
Iron & Steel in Argentina
Argentina is Latin America's third leading iron and steel producer after Brazil and Mexico, though its steelmaking industry remains small by world standards. Argentina's largest steel plant, Ternium Siderar, still uses the older, more energy-intensive blast furnace/basic oxygen furnace technology, while the country's other two major steelmakers, ArcelorMittal Acindar and TenarisSiderca, have adopted more energy-efficient EAF (electric arc furnace) technology.[45]
Environmental & social impacts of energy in Argentina
Development of Argentina's unconventional hydrocarbon resources continues to negatively impact local communities, causing depletion of water supplies[46] and environmental contamination from toxic residues associated with fracking.[47] Argentina's Ministry of the Environment has documented numerous negative consequences of climate change, including glacial recession, sea level rise, extreme precipitation and flooding, diminished flows in the La Plata river basin, and the potential for severe water shortages.[6][9][48]
Another current topic of environmental controversy is the Chinese-financed Condor Cliff-La Barrancosa hydroelectric mega-project currently under construction in Patagonia; the dams have provoked sustained protests due to their potential impacts on the Río Santa Cruz watershed, the Perito Moreno glacier, endangered endemic species, and the Mapuche y Tehuelche indigenous communities.[33][34][36]
References
- ↑ 1.0 1.1 "IEA Policies and Measures Database © OECD/IEA". IEA. Retrieved 2021-04-10.
{{cite web}}: CS1 maint: url-status (link) - ↑ 2.0 2.1 2.2 2.3 "Panorama Energético de América Latina y el Caribe 2021". OLADE. November 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ 3.0 3.1 3.2 "Panorama energético de América Latina y el Caribe 2020 (p 98)". OLADE. November 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Ley 27191/2015" (PDF). Boletín Oficial de la República Argentina: Poder Legislativo. September 23, 2015.
{{cite web}}: CS1 maint: url-status (link) - ↑ "IEA Energy Atlas". International Energy Agency. Retrieved 2021-06-20.
{{cite web}}: CS1 maint: url-status (link) - ↑ 6.0 6.1 "Segunda Contribución Determinada a Nivel Nacional de la República Argentina" (PDF). Ministerio de Ambiente y Desarrollo Sostenible, República Argentina. December 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ 7.0 7.1 "La Argentina se comprometió a reducir un 26% las emisiones de gases de efecto invernadero para 2030". Telam. December 31, 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Actualización de la meta de emisiones netas de Argentina al 2030" (PDF). Presidencia Argentina. October 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ 9.0 9.1 "Cumbre climática: Argentina no presentó su plan de neutralidad de carbono". La Voz. November 5, 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ 10.0 10.1 10.2 "Argentina". U.S. Energy Information Administration (EIA). Retrieved 2021-06-18.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Especial LN+: Río Turbio, una mina convertida en símbolo de la corrupción". La Nación. September 10, 2017.
- ↑ 12.0 12.1 12.2 "bp Statistical Review of World Energy 2022" (PDF). BP. June 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Informe anual de hidrocarburos - Año 2020" (PDF). Instituto Argentino de Energía “General Mosconi”. March 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ 14.0 14.1 14.2 14.3 "Informe anual de hidrocarburos - Año 2021" (PDF). Instituto Argentino de Energía “General Mosconi”. March 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "La argentina YPF recuperará producción de petróleo y gas centrándose en Vaca Muerta". S&P Global Platts. November 11, 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ 16.0 16.1 16.2 "Growth in Argentina's Vaca Muerta shale and tight gas production leads to LNG exports". U.S. Energy Information Administration (EIA). July 12, 2019.
{{cite web}}: CS1 maint: url-status (link) - ↑ "El gasoducto de los lamentos". Infobae. June 11, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Argentina, Brazil set to lose most Bolivian gas imports by 2025". Oil & Gas Journal. November 10, 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ "El gas boliviano, entre la falta de extracción y la falta de mercados". Sputnik Mundo. January 16, 2021.
- ↑ 20.0 20.1 "Argentina races to ensure winter gas supply". Argus Media. February 22, 2021.
- ↑ "Engie hará la mayor compra de gas argentino para usar en Chile desde firma de protocolo". Revista Electricidad. December 27, 2017.
{{cite web}}: CS1 maint: url-status (link) - ↑ 22.0 22.1 "Argentina's Vaca Muerta, LNG Ambitions Face Uncertainty as New Government Settles In - Natural Gas Intelligence". Natural Gas Intelligence. February 28, 2020.
- ↑ "Argentina to boost LNG imports for winter". Argus Media. March 2, 2021.
- ↑ "Argentina bulks up state-owned energy firm Ieasa". Argus Media. June 18, 2021.
- ↑ Lenton, Christopher (September 21, 2021). "Latin American LNG Demand Booming Amid Tight Global Natural Gas Market". Natural Gas Intelligence. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Summary Data – Global Fossil Infrastructure Tracker". GEM (Global Energy Monitor). Retrieved 2021-06-16.
{{cite web}}: CS1 maint: url-status (link) - ↑ Lenton, Christopher (February 22, 2022). "Argentina's Ieasa Spearheading Vaca Muerta Natural Gas Pipe; In-Service in 2023". Natural Gas Intel. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Argentina's TGS to build Vaca Muerta gas pipeline, conditioning plant". Reuters. April 3, 2018.
- ↑ "A Complicated Major Gas Pipeline System on the Drawing Boards in South America". Pipeline Technology Journal. September 18, 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ "El gasoducto de Vaca Muerta a Brasil, un proyecto de $s5.000 millones". Vaca Muerta News. September 22, 2020.
- ↑ "Nación proyecta un gasoducto "AF - CFK" para Vaca Muerta". Diario Río Negro. July 24, 2020.
- ↑ "¿Pueden las renovables llevar a una recuperación verde de América Latina?". Dialogo Chino. October 2, 2020.
- ↑ 33.0 33.1 33.2 "China genera energía en Argentina". Diálogo UPR. May 29, 2018.
{{cite web}}: CS1 maint: url-status (link) - ↑ 34.0 34.1 "Con nuevo gobierno, Argentina reactiva las represas en la Patagonia". Dialogo Chino. February 25, 2020.
- ↑ Geist, Nicolás Misculin, Agustin (November 1, 2021). "Argentina, Fortescue unveil $8.4 bln green hydrogen investment plan". Reuters.
- ↑ 36.0 36.1 "Represas de Santa Cruz, la avanzada china en infraestructura energética". EconoJournal. June 6, 2019.
- ↑ Jáuregui, Juliana González; Jáuregui, Juliana González. "How Argentina Pushed Chinese Investors to Help Revitalize Its Energy Grid". Carnegie Endowment for International Peace. Retrieved 2022-05-02.
- ↑ "Argentina wants China to fully fund $8.3 bln nuclear plant amid cash shortfall". Reuters. 2022-04-05. Retrieved 2022-05-02.
- ↑ "Argentina expands nuclear energy with China's help". Youtube. February 17, 2022. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "2020 Statistical Review of World Energy" (PDF). BP. June 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ Cabello, Luisa (March 8, 2022). "Livent anuncia que triplicará la producción de litio en Argentina". PV Magazine. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ Zarco, Jorge (March 9, 2022). "El litio de América Latina". PV Magazine. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ Sánchez Molina, Pilar (December 22, 2021). "Rio Tinto adquirirá el proyecto de litio Rincón en Argentina por 825 millones de dólares". PV Magazine. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ Cabello, Luisa (January 14, 2022). "Las empresas argentinas de litio piden un precio propio y un marco regulatorio". PV Magazine. Retrieved May 2, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Steel Dashboard". Global Energy Monitor. Retrieved 2021-04-12.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Los habitantes de la capital nacional del fracking, sin agua". OPSur. January 25, 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Las autoridades neuquinas no prevén medidas ambientales para los residuos peligrosos provenientes del fracking". FARN (Fundación Ambiente y Recursos Naturales). June 18, 2021.
- ↑ "Gabinete Nacional de Cambio Climático: Implementando el Acuerdo de París - Mapa de vulnerabilidad climática" (PDF). Ministerio de Ambiente y Desarrollo Sustentable. 2019.
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