Chilean Energy Minister Ximena Rincón visited the Vaca Muerta field in Neuquén province a few weeks ago and invited Argentina to use their ports on the coast of the Pacific Ocean to export oil and gas to Asian markets. A communiqué from Chile’s foreign ministry offered more details on the proposal. “Chile can serve as a close, stable, and complementary regional market for Vaca Muerta’s energy production, offering port infrastructure, LNG [liquefied natural gas] terminals, regulatory expertise, logistical capabilities, and a strategic geographic location for exploring, in the long term, potential routes to Pacific markets,” the text explained.
The reasons behind the offer are clear, as Chile imports nearly all of its hydrocarbons. This leaves them exposed to price volatility due to the war in the Middle East. Santiago has already been relying on its neighbor’s reserves.
In 2025, 20% of energy imports came from Argentina, equivalent to US$2.8 trillion. This made Argentina Chile’s second-largest energy supplier, behind the United States. The ambitious plan, however, runs up against a problem endemic to Argentina: government bureaucracy and the country’s poor track record as an energy exporter.
There are currently two LNG export projects under development along the Atlantic coast in Río Negro province. The first is Argentina LNG, led by state-run oil company YPF, along with Italy’s Eni and Abu Dhabi’s Adnoc. The other is being driven by Southern Energy (SESA), a consortium comprising PAE, YPF, Pampa Energía, and Harbour Energy.
The other reason cited by Dreizzen is that it would also pose a risk for Chile because it would have to rely on a project in another country. He cited a precedent from 19 years ago, when Argentina abruptly cut off gas supply to its neighbor. A cold snap caused demand to spike in Argentina, which was unable…
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