Several factors are now controlling the gas market, especially as the Russo-Ukrainian war is still at its height, amid fears that supplies of Russian gas to the old continent will be disrupted and Algerian gas will not be able to meet all demand from Europe.
Countries that do not have this strategic material are looking for new sources to ensure their energy security.
For their part, the gas-supplying countries want to conquer new markets and make further profits.
Algeria has become the main country the European Union relies on to limit imports of Russian gas.
Amid the diplomatic crisis between Algeria and Spain, Argentina is trying to ship its unconventional gas to Madrid instead of the latter importing Algerian gas.
El Mundo revealed that Argentine President Alberto Fernandez made Spanish Prime Minister Pedro Sanchez a tempting and enticing offer to import Argentine gas and diversify suppliers instead of relying on Algeria and avoiding any crisis.
Currently, Argentina is not able to offset Algerian gas because Argentina is geographically far from Spain.
Argentina has the second-largest shale gas reserves in South America, according to Worldometer data, but it is not self-sufficient, importing gas from Bolivia (it imported 12 million cubic meters per day in 2021) and LNG.
Argentina is seeking financing partnerships to extract unconventional gas from the “Vaca Muerta” fields in the south of the country, and the pipeline will last “three or four years”, according to Argentine President Alberto Fernandez.
After completing the logistical preparations, Spain can start importing Argentine gas in the long term.
It should be noted that Pedro Sanchez’s government has not yet responded to Argentina’s offer and that official negotiations on the matter have not yet started.
On May 10, during the visit of the Argentine President to Spain, after his meeting with Sanchez, he wrote on Twitter: “We can be a stable energy supplier”.
“I think we have an ideal synergy to benefit from gas with Spain,” Fernandez explained in an interview with Spanish broadcaster RTVE. Spain has 30% of the plants converting LNG to LNG and we can make an agreement to become LNG supplier with Spain. That’s how it’s going to be distributed from Spain to the rest of Europe, it’s a project that we’ve had for three years and that we have to fund.