Background on the Situation
Argentina experienced its coldest day in the last three decades on July 2, causing residential gas demand to reach a historic high of 100.3 million cubic meters per day—a 25% increase compared to the same period last year. This unprecedented demand has led to an emergency within the gas supply system.
Government’s Response and Measures Taken
In response to the intense cold spell affecting the country, the Argentine government decided to interrupt gas service for Compressed Natural Gas (CNG) stations and industries with firm contracts across much of the nation. This action aims to regulate demand and prevent supply shortages.
The Secretariat of Energy announced on Wednesday night that this decision was made in coordination with gas concessionaries and distributors nationwide, ensuring supply to homes, hospitals, and schools amid record demand.
According to the Secretariat of Energy, based on data from the National Gas Regulatory Entity (ENARGAS), Wednesday saw a record demand exceeding 100 million cubic meters per day, marking a 25% increase compared to the same period last year. The decision was made “in coordination with concessionaries and distributors.”
The Comité de Crisis, comprising transport and distribution licensees, ENARGAS, the Secretariat of Energy, Cammesa, and Enarsa, was convened to implement measures outlined in the existing regulations to safeguard residential users.
Areas Affected by Gas Restrictions
These measures are primarily applied in the Northern, Central-Northern, Litoral, Northwestern, Cuyo, and Southern regions where gas distributors had to interrupt firm gas contracts for CNG stations and industries due to the high demand.
In other regions, gas reductions were implemented for interruptible contracts or reduced to minimum technical levels.
“These decisions were made according to established technical protocols, always prioritizing system security and residential demand supply,” they clarified. “This situation once again highlights the structural problems plaguing Argentina’s energy system: for over two decades, insufficient investment, lack of price signals, and frozen tariff schemes have prevented the development of necessary infrastructure to address such critical situations.”
Duration of the Cold Snap
The cold spell affecting all 24 jurisdictions in the country originated from an Antarctic air mass that settled in Patagonia and then spread to central and northern regions. Estimates suggest that this period of low temperatures began to subside on Thursday, July 3.
Key Questions and Answers
- What caused the gas consumption record? Argentina experienced its coldest day in three decades on July 2, driving residential gas demand to a historic high of 100.3 million cubic meters per day.
- Which government body took action? The Argentine Secretariat of Energy, in coordination with gas concessionaries and distributors, decided to interrupt gas service for CNG stations and industries with firm contracts.
- Which regions were most affected by gas restrictions? The measures were primarily applied in the Northern, Central-Northern, Litoral, Northwestern, Cuyo, and Southern regions.
- When is the cold snap expected to end? The cold spell affecting Argentina began to subside on Thursday, July 3, according to estimates.
