Argentina to Nearly Triple Gas Purchase Price to Stimulate Drilling

Bloomberg reported that Argentina intends to nearly triple natural gas prices to producers to encourage output.

As quoted in the market report:

The government will pay producers $7.50 per million British thermal units, the government said today in a resolution signed by deputy Economy Minister Axel Kicillof and Domestic Trade secretary Guillermo Moreno. The average price paid to producers in 2011 was $2.50 per million Btu, gas-producing province Neuquen’s governor, Jorge Sapag, said in an e-mailed response to questions in September.

To view the whole Bloomberg report, click here.