The former head of Shell’s subsidiary in Argentina, Juan Jose Aranguren, is the country’s new energy minister after elections last week brought a center-right government to power. On Monday, he said Argentina will work to raise gas prices in order to encourage production.
Juan Jose Aranguren
The Latin American country is enacting measures to address its energy deficit, which is depleting already-low foreign reserves. It depends heavily on liquid gas imports.
At an event Monday in Buenos Aires, Aranguren was quoted by Reuters as saying, “In the case of natural gas, we are going to start recovering the price of gas at the wellhead in order to remunerate appropriately investment in local production.”
He added that the new government of President Mauricio Macri would maintain the current shareholder structure of state-run YPF. The Argentine government has held a 51% stake in the company since 2012.
Many voters have expressed concerns that Macri might privatize companies that were nationalized during the tenure of Macri’s predecessor, Cristina Fernandez.