Argentina receives seven offers for first LNG tender of 2025

Seven companies are competing to supply cargoes under the first LNG purchase tender launched by Argentina's state-run energy company Enarsa to meet its Southern Hemisphere's 2025 winter needs.

TotalEnergies, BP, PetroChina, Glencore, Petrobras, Trafigura, and Vitol submitted offers by the March 25 deadline, in an event that was streamed live on Enarsa's YouTube channel.

UK's Centrica informed Enarsa that it was opting not to participate in the tender.

Enarsa, the sole LNG importer into Argentina, was seeking six LNG cargoes of 2.1 trillion Btu for delivery to the Escobar terminal in Buenos Aires province.

The delivery dates for the tender are April 15-25, May 10-12, May 21, May 28, June 2, and June 7, with the contracts expected to be awarded on a fixed basis tied to Henry Hub, Brent, and TTF gas hub prices, market sources previously said.

The tender is scheduled to be awarded on March 26, "at 9 pm local time at the latest," a source with knowledge of the situation said.

Enarsa's first tender of the year was originally expected to take place during the week of March 10-14, but the date was postponed due to a decision by top management, a source previously said.

All the offerors in the latest tender, except for PetroChina and Petrobras, were awarded cargoes in some of Enarsa's 2024 buy tenders.

In 2024, Enarsa imported 29 cargoes procured in five tenders, down from 44 the previous year, according to the company's website. One additional cargo imported in May was purchased on the spot from Brazil's state-run company Petrobras during a higher-than-expected peak demand scenario.

Enarsa is expected to import fewer cargoes this year than in 2024 due to rising domestic natural gas production, but the company's projections will also depend on winter temperatures, a source with knowledge of the situation previously said.

The initial projection at the beginning of the year was to import between 20 and 25 cargoes, but by the end of February, the estimate was closer to 20 cargoes, the source said.

The prices Enarsa paid in the five tenders it issued last year averaged $9.991/MMBtu, $9.996/MMBtu, $12.101/MMBtu, $11.739/MMBtu, and $13.624/MMBtu, respectively, based on official information from Enarsa. The price paid for the spot cargo purchased from Petrobras last year was $12.800/MMBtu.