Overview
- The government will cover the extra cost of imported liquefied natural gas for priority users this winter and then add the difference to bills starting in November through the Daily Accumulated Differences system.
- State energy firm Enarsa will keep control of LNG buying after the privatization plan was dropped over high-priced proposals from Naturgy and Trafigura.
- Market estimates put winter LNG needs near US$1 billion for roughly 23 to 25 cargoes, with imported gas near US$20 per million BTU versus about US$3.80 for domestic supply.
- The subsidy tied to priority demand is estimated at US$150 million to US$200 million, while large industrial users and power generators must secure their own gas at global prices.
- Households should see flatter winter bills but higher charges later, and the government is also considering larger discounts for subsidized users and steps to slow fuel price pass-through at the pump.