From The Report: Argentina 2018
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Over the last 20 years the fortune of the Argentine economy has been closely tied to one commodity: natural gas. In the 1990s, the construction of combined-cycle power stations allowed Argentina to produce plentiful and inexpensive energy from its conventional gas fields in the south and east. Industry forecasts were so optimistic that several trans-Andean pipelines to Chile were constructed, but after a brief period as an exporter in the early 2000s, Argentina returned to being a net importer of gas in 2008. Declining domestic production due to a lack of incentives, coupled with rising gas imports from neighbouring countries, placed the energy sector at the centre of Argentina’s economic woes throughout the 2010s; however, the sector could also hold the key to the country’s revival. A stable and attractive regulatory environment, combined with significant potential in the hydrocarbons, renewable energy, and thermal and hydroelectric generation segments, provide ample opportunities and security for global investors. This chapter contains interviews with Alejandro Sruoga, Secretary of Energy Policy, Maurizio Bezzeccheri, CEO, Enel Argentina; and Danny Massacese, Upstream Managing Director, Pan American Energy Group.