Kirchner raises gas supply prices

By GARETH CHETWYND Rio de Janeiro

 06 December 2012 23:59 GMT

ARGENTINA’S President Cristina Fernandez de Kirchner has agreed price increases for natural gas supplied by oil and gas companies, ending almost a decade of hardline policies that gave the country some of the lowest wellhead prices in the world.

The administration announced that it will start paying state-controlled YPF $7.5 per million Britush thermal unit for additional output, up from the average rate of $2.3 per million Btu that has been charged for conventional gas in recent years.

The new rate is still about half of what Argentina has been paying for imported liquefied natural gas and also less than is paid for imported Bolivian gas.

Argentina’s import bill has been running at about $3.5 billion but some oil sector insiders said this is set to soar much higher unless investments start…

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