Argentina is on track to significantly increase its foreign exchange earnings and bolster the Central Banks reserves in 2024, thanks to its energy sector.After facing a $4.4 billion deficit in 2022, the nation balanced its energy trade in 2023.
Now, its projected to achieve a $4 billion surplus, marking a 20-year high.The boost comes from soaring oil exports and reduced LNG and diesel imports.This year, oil exports could hit $5.087 billion, up 30%, with daily shipments averaging 175,000 barrels.This jump is tied to higher production in Vaca Muertas unconventional oil fields, despite earlier transport limits.Recent expansions in oil transport capacity, enhancing connections to both Atlantic and Pacific coasts, promise to further elevate export levels.Argentina Eyes Record Energy Trade Surplus in 2024.
(Photo Internet reproduction)Moreover, the completion of the Oldelval pipeline expansion will facilitate crude transport from Vaca Muerta to Baha Blanca, easing previous bottlenecks.On the import side, energy purchases are expected to drop to $4.858 million in 2024 from $12.868 billion in 2022, driven by lower LNG prices and increased gas transport capacity.Argentinas strategic acquisition of ten LNG ships for $210 million and a gas export deal with Bolivia reflect efforts to secure winter energy supplies.Post-July, the focus shifts to using Vaca Muerta gas to satisfy domestic needs via the northern reversal pipeline.Diesel and gasoline, once heavy drains on foreign currency, are predicted to see a spending cut to $1.638 billion in 2024, as their use in electricity generation diminishes.This potential surplus, unmatched since 2009s $3.830 billion, underscores Argentinas growing energy sector strength and strategic positioning on the global stage.