Argentina to pay $7.50 for natgas

Wellhead price: Government resolution codifies earlier government statements

Argentina will almost triple natural gas prices to producers to encourage conventional and shale drilling and stem declining output, according to a subsidy plan published Thursday, reports said.

A plan published Thursday in the country's official gazette, which codifies prior announced plans to raise the price for producers, shows the government paying producers $7.50 per million British thermal units, Bloomberg reported.

Previously, producers could count on as little as a third of that same price.

"Natural gas reserves are declining as a consequence of low investments in exploration and exploitation," the government said in the plan according to the news wire.

The move comes as Argentina's national oil and natural gas production in Deecember were both down more than 6% compared to…

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