Market Trends of Argentina Oil and Gas Downstream Industry
This section covers the major market trends shaping the Argentina Oil & Gas Downstream Market according to our research experts:
Oil Refining Capacity to Witness Moderate Growth
- In Argentina, the capacity of refineries had decreased from 657 Thousand barrels daily (kb/d) in 2015 to 580 kb/d in 2018. The refinery throughput decreased by 5.9% from 500 kb/d in 2017 to 470 kb/d, in 2018.
- Campana Refinery, operated by Pan American Energy is, in 2019, under expansion. It has a production capacity of 4.5 million cubic meters per year of petroleum products. It is expected to increase the production capacity of fuels by 60% and further improve its quality by reducing its sulfur contents.
- In 2019, Yacimientos Petrolíferos Fiscales SA was considering a proposal to increase the refining capacity of its refinery in La Plata. La Plata is the largest refinery in the country, with a capacity of 189,000 barrels per day.
- Oil consumption reduced 6% from 32 million tons of oil equivalent (Mtoe) in 2017 to 30.1 Mtoe in 2018. The decline in use can be attributed to the economic slowdown in the country.
- Argentina's oil and gas downstream industry is expected to grow slightly over the forecast period due to an increase in oil production in the country.
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Increasing Demand of Natural Gas to Drive the Market
- Natural gas imported by Argentina decreased by 10.45%, year on year, from 5.6 million tons oil equivalent (Mtoe), in 2015 to 3.6 Mtoe in 2018, owing to the increasing gas production in the country.
- Natural Gas Production in the country has increased substantially, by 6.1%, rising to 33.9 Mtoe in 2018 from 31.9 Mtoe, in 2017. The increase in production is due to the rise in shale gas production from Vaca Muerta.
- Vaca Muerta, a giant shale play, is leading a recovery in the country's oil and gas production. It has changed the scenario in the refinery business by increasing the refinery throughput. Oil production was 518 kb/d (thousands of barrels per day) in August 2019, i.e., 5.5% higher compared to August 2018. In 2019, conventional oil decreased by 3%, whereas unconventional production can be compensated for more than 58% of the decrease in oil.
- Therefore, based on above-mentioned points, increasing consumption of natural gas is expected to drive the oil and gas downstream market in Argentina during the forecast period.
