BUENOS AIRES, Argentina, Sept. 10, 2018 /PRNewswire/ -- Excelerate Energy L.P. ("Excelerate") and Transportadora de Gas del Sur S.A. ("TGS") today announced the execution of a Memorandum of Understanding ("MOU") to jointly collaborate on the assessment of a liquefaction project (the "Project") in the city of Bahía Blanca, Argentina. Argentina currently imports liquefied natural gas (LNG) through two floating import terminals, particularly during the country's peak winter consumption. The successful development of Argentina's shale gas reserves resulted in a potential excess of natural gas during the summer months. The project aims at studying the technical and commercial viability of liquefying and exporting natural gas during the summer season, allowing a more sustainable development of shale gas resources and reducing Argentina's annual natural gas net import needs. The study is expected to be completed by the end of 2018, at which time Excelerate and TGS will share the results with government and industry officials and decide on further actions towards the implementation of the Project.
"Given the high seasonality of Argentina's natural gas consumption, LNG has played a critical role in meeting the country's energy demands," stated Excelerate's Chief Commercial Officer Daniel Bustos. "This Project will significantly enhance Argentina's capacity to maximize the use of local resources by allowing a more predictable development of shale gas production while reducing the overall costs of importing LNG."
TGS is carrying out an important midstream project aimed at the transportation and conditioning of the natural gas production derived from the Vaca Muerta Basin, located in the province of Neuquén, Argentina. This Project represents an essential contribution to the development of shale gas reserves, promoted by the National and Provincial Governments, as it will ensure the infrastructure required to inject incremental gas production to the main transportation systems.
"Carrying out LNG production through the Project will be key to promote the development of unconventional gas, since it will allow to expand the scale of the gas market, increasing export opportunities, after having met domestic market needs in Argentina," stated TGS´ Chief Commercial Officer Néstor Martín.
Both Excelerate and TGS have been critical players in the growth of the Argentine energy industry. Currently, one hundred percent of LNG imported and regasified into the country is through Excelerate's two floating storage and regasification units (FSRUs). Excelerate developed South America's first LNG import terminal in 2008 in Bahía Blanca, following with the second terminal in 2011 in Escobar, Argentina. TGS is the leading natural gas transportation company in Argentina and owns and operates South America's largest pipeline network. The Project underscores both party's commitment to seeing Argentina's energy sector become more sustainable for the long term.
About Excelerate Energy L.P.
Excelerate Energy L.P. is a US-based LNG company located in The Woodlands, Texas. It is part of a privately held US energy group that also includes Kaiser Francis Oil Co, an E&P company with production in the US and Canada along with significant midstream assets, and Cactus Drilling Co, the largest private drilling company in the US. Excelerate is the pioneer and market leader in innovative floating LNG solutions, providing integrated services along the entire LNG value chain with an objective of delivering rapid-to-market and reliable LNG solutions to customers. Excelerate offers a full range of floating regasification services from FSRU to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Buenos Aires, Chittagong,Dhaka, Doha, Dubai, Rio de Janeiro, and Singapore. For more information, please visit the website www.excelerateenergy.com.
About Transportadora de Gas del Sur S.A.
TGS is currently the largest transporter of natural gas in Argentina and operates the most extensive pipeline system in Latin America in terms of length, delivering 60% of the total natural gas transported in Argentina,through 5,706 miles of pipeline, with a maximum capacity of 2.8 Bcf/d. TGS transportation system connects the Neuquén, San Jorge and Austral basins,located in the south and west of Argentina, to the greater Buenos Aires area and the major consumption centers of southern Argentina.
TGS has also a leading role in natural gas liquids production and commercialization in the local and exports market − an activity performed at General Cerri Complex, located in Bahía Blanca, province of Buenos Aires.
In addition, the infrastructure investments that TGS is currently undertaking in Vaca Muerta Basin have allowed TGS to take a great leap forward in the activities and services rendered to producers in the hydrocarbon areas, positioning TGS as one of the main Midstreamers of Argentina.
For further information about TGS, please visit the website www.tgs.com.ar .
SOURCE Excelerate Energy L.P.