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Argentina Pauses LNG Privatization, Enarsa to Run Winter Imports

The move aims to shield gas bills from a global price spike tied to Middle East turmoil.

Overview

  • Argentina kept state firm Enarsa in charge of liquefied natural gas purchases for winter 2026 after Wednesday's decision, with privatization pushed to at least next year.
  • Officials said recent volatility drove the call, as global LNG spot prices jumped from near $10 to peaks around $20–22 per MMBtu following tensions around the Strait of Hormuz and damage at Qatar’s Ras Laffan complex.
  • The tender drew two finalists, Naturgy and Trafigura, whose service fees of $4.50 and $4.57 per MMBtu were deemed uneconomic once international prices spiked.
  • Enarsa has begun booking the first vessels for May to feed the Escobar regasification terminal and cover early winter demand.
  • Argentina still expects roughly 20–25 cargoes costing about $700–800 million, and keeping Enarsa is meant to soften bill shocks even if it shifts more of the cost to subsidies.