The national government presented on Thursday the guidelines to increase gas production during the next four years. It has as its central pillar a 4-year competitive auction scheme for onshore development. For off-shore projects, an eight-year term will apply to amortize costs. It aims to secure fixed blocks of 70 million cubic meters per day (MMm3/d) for production companies for 365 days until 2024. It plans to authorize export volumes of up to 11 MMm3/d during the summer season. By promoting local production, the desired effect is to achieve a reduction in imports of Liquefied Natural Gas (LNG) and liquid fuels, to enable a reduction in the cost of the service.
The corn harvest ended this week at the national level with a production of 50 million tons, exceeding the soybean harvest for the first time in 20 years, reported the Buenos Aires Grain Exchange (BCBA). The corn harvest covered a total area of 6.12 million hectares, with a national average yield of 81.7 quintals per hectare. The reduction in export duties and the incorporation of technology made it possible to increase production.
The Government announced this Thursday the execution of a series of public works destined to the provinces of Buenos Aires, Entre Ríos, Corrientes, San Juan and Santa Cruz that contemplate an investment of more than 22 billion pesos ($302.9 mn), the initiative will generate 170 thousand new jobs.
The project of differential withholding and refunds for agribusinesses is advancing. This week, the Argentine Agribusiness Council (CAA) made the first concrete proposal to the government: rebates ranging from 4% to 7%. Two levels of rates would apply according to the degree of industrialization: 4% for products with less processing and 7% for those with more processing. No refunds would grant for exports of soya beans, maize, wheat, barley and sunflower. The Foreign Ministry believes that shipping from the sector could increase from $65 bn to $8 bn in the next two years.
The Central Bank (BCRA) signed on Thursday the renewal of its currency swap agreements with the Bank of the People's Republic of China (PBC), for some $18.5 billion, with a 3-year term.