Argentina to Approve Repsol, Exxon Mobil Fuel Supply Plans

According to people familiar with the matter on the 12th, Argentina’s Ministry of Energy is expected to approve Repsol and Exxon Mobil’s plan to supply 800,000 tons of fuel in the week of March 12 to meet the fuel shortage of the country’s power plants amid natural gas shortages. Among them, Repsol's Argentina branch will supply 600,000 tons of fuel, and ExxonMobil's Argentina branch will supply 200,000 tons.

Comprehensive foreign news reports on March 12: According to informed sources on the 12th, Argentina’s Ministry of Energy is expected to approve the Spanish company Repsol YPF SA (Repsol YPF SA) and ExxonMobil Corp. (ExxonMobil Corp.) in the week of March 12. Its Argentina branch plans to supply 800,000 tons of fuel to meet the fuel needs of power plants in the country amid natural gas shortages.

Previously, Argentina's national electricity wholesale market management company Cammesa issued a bidding announcement for 1 million tons of fuel oil in December 2006.

According to the person familiar with the matter, Repsol’s Argentina branch will supply 600,000 tons of fuel, and Exxon Mobil’s Argentina branch will supply 200,000 tons. He revealed that the supply plan is still subject to approval from the Argentine Ministry of Energy, adding that this approval is expected to be issued the week of March 12.

Overall, Cammesa expects fuel consumption in Argentina's power sector to be between 1.8 million and 2 million tons in 2007. Argentina's power plants' dependence on fuel has been growing steadily since it began facing natural gas shortages three years ago. Previously, fuel consumption in Argentina's power industry was 828,000 tons in 2004, 1.1 million tons in 2005, and 1.7 million tons in 2006.