San Franciso: A week after making a tender to buy 11 shipments of LNG (liquefied natural gas), Argentina’s state-controlled energy company YPF took the plunge and bought five cargoes, traders said on Friday.
YPF (Yacimientos Petroliferos Fiscales or Treasury Petroleum Fields in English) had been expected to make a deal for some time but delayed by months because of ample supply and demand for the low-cost and more green-friendly fuel. These purchases, set to be delivered between April and June, are to partially cover its southern hemisphere winter needs.
Suppliers of these minimum of five shipments include Shell, EDF Trading, Petrobras, BP and Excelerate.
The cargoes are expected to be split between Argentina’s two import terminals at Bahia Blanca (400 miles south of Buenos Aires) and at Puerto Escobar on the Parana River.
Sales prices for the cargoes achieved at least a $1 per million British thermal units (mmBtu) premium to Britain’s National Balancing Point (NBP) gas hub price.
YPF is a vertically integrated energy company, whose activities cover the gamut from exploration and production of oil and gas through the transportation, refining and marketing of gas and petroleum products.