The European Union (EU) and Argentina have signed an agreement on the delivery of Argentine liquefied natural gas (LNG), as well as renewable energy and hydrogen, according to recently published European Commission documents.
The Memorandum of Understanding (MoU) was signed by European Commission President Ursula von der Leyen and Argentine President Alberto Fernandez at the EU-CELAC summit in Brussels, Belgium.
The MoU contains a provision to “allow a stable delivery” of LNG from Argentina to the EU that is “consistent with their respective long-term decarbonisation goals and consistent with the objectives of the Paris Agreement”. The agreement further states that the delivery of LNG “is based on the principle of market-oriented prices”, and one of the next steps is the creation of a plan “for the efficient use of infrastructure to accelerate the export and shipment of LNG”. in the European Union”.
The agreement also provides for the EU and Argentina to work together to develop and promote renewable energy and energy efficiency, as well as the use of hydrogen and its derivatives in applications such as industrial processes, transport and energy storage.
The MoU also sees the two sides commit to reducing methane leaks in the fossil gas supply chain to the “highest technically feasible level”. To this end, the EU and Argentina will examine technologies to reduce venting and roasting, as well as to integrate recovered methane into the supply chain “to increase the efficiency of the natural gas supply process.”
“Our energy cooperation is a particularly promising field for ensuring a just and clean transition on both continents,” von der Leyen said. “The memorandum of understanding being signed today will guide and shape our cooperation in the coming years. It is an important step in the rollout of the EU’s Global Gateway Investment Agenda (GGIA) and will help us to achieve our climate and energy goals.”
The GGIA, also announced on Monday, will see Team Europe invest $50.54 billion (€45 billion) in more than 130 projects in Latin America and the Caribbean through 2027, in sectors including clean energy, raw materials, health and education. Team Europe is made up of the EU, EU member states, the European Investment Bank and the European Bank for Reconstruction and Development.
Von der Leyen also announced a $2.25 billion (€2 billion) investment to support Brazil’s green hydrogen production and energy efficiency, as well as the launch of the Renewable Hydrogen Fund in Chile, which is supported by Team Europe and has a starting budget of $252.7. million (225 million euros).
The EU has been looking for alternatives to reduce its dependence on Russian energy following Russia’s invasion of Ukraine and corresponding sanctions on the nation. The US will more than double its LNG exports to the EU by 2022, according to a joint official statement. In 2022, US exports to the EU were 1.98 trillion cubic feet (56 billion cubic meters), up from 776.92 Bcf (22 Bcm) in 2021, making the EU in the largest destination for US LNG exports, accounting for more than 52 percent of supplies. By the end of 2022, Russian gas accounted for 16 percent of EU gas imports, down from 37 percent in March 2022, the statement said.
Vaca Muerta Argentina, one of the world’s leading shale producers, is expected to reach a production of one million barrels of crude oil per day by 2030, as long as the carrying capacity and availability of platforms do not limit their growth, according to a previous press release from research company Rystad Energy.
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