YPF, Enarsa To Build LNG Plant Near Buenos Aires

Argentine oil company YPF SA, the local unit of Spain's Repsol YPF SA, will build a LNG plant about an hour north of Buenos Aires.

The LNG plant, which will cost around $150 million to build, will be financed equally by YPF and the state energy company Enarsa.

The government typically rations gas to industrial firms during Argentina's cold winter months, which run roughly from May through September.

Argentina already gets LNG from a regasification vessel located at the southern port of Bahia Blanca in the province of Buenos Aires.

Argentina also imports natural gas from Bolivia, but the amount of gas produced domestically, coupled with imports, still fails to meet demand during the winter, leading to rationing.

Argentine President Cristina Fernandez said that her government is working with Uruguay on the construction of an LNG plant, though she didn't provide more details. Presidents of the two countries are thought to be nearing finalization of plans to build a regasification plant near the Uruguayan capital of Montevideo.

Since an economic meltdown in 2002, the government has kept most energy prices and utility rates frozen partly because of its belief that rates should be kept low to help spur growth in other areas of the economy.

But the price controls have crimped profits for oil and gas companies and given them a disincentive to invest in exploration and production.

As a result, Argentina's oil and gas reserves have fallen while demand has risen, creating an energy crunch that has sometimes led to blackouts and rationing.

Argentina gets more than 90% of its energy from oil and gas. Energy experts say the country depends more on natural gas than any other nation in the region.

A K Balyan to head Petronet LNG

Petronet LNG, India's largest LNG importer, has appointed Ashok Kumar Balyan as new Chief Executive Officer and Managing Director.

Balyan, who currently is Director for Human Resources and Business Development in Oil and Natural Gas Corporation, has accepted the offer made at the meeting of board of Petronet (PLL).

Balyan will now resign from ONGC and is likely to join PLL by month end. He is due to retire from ONGC on July 31, 2011, on attaining superannuation age of 60 years.