The market for oil and gas downstream sector in Argentina is expected to grow at a CAGR of more than 1.13% during the forecast period of 2020 – 2025. Factors such as increasing demand for natural gas and rising production of oil in the country are expected to drive the demand for the Argentina oil and gas downstream market during the forecast period. However, decreasing the consumption of oil is hindering the growth of the market.

  • The prospects of refineries in Argentina are quite optimistic due to the increase in production levels of the shale play. This, in turn, is expected to boost the domestic refining capacity in the coming years.
  • Investments in the upstream and downstream oil and gas activities in Argentina are likely to create immense opportunities for the market studied.
  • Increasing the production of oil and gas is expected to boost the oil and gas downstream sector. Also, increasing investments in refineries and petrochemical plants are further aiding the growth in the industry.



Key Market Trends

Oil Refining Capacity to Witness Moderate Growth

  • In Argentina, the capacity of refineries had decreased from 657 Thousand barrels daily (kb/d) in 2015 to 580 kb/d in 2018. The refinery throughput decreased by 5.9% from 500 kb/d in 2017 to 470 kb/d, in 2018.
  • Campana Refinery, operated by Pan American Energy is, in 2019, under expansion. It has a production capacity of 4.5 million cubic meters per year of petroleum products. It is expected to increase the production capacity of fuels by 60% and further improve its quality by reducing its sulfur contents.
  • In 2019, Yacimientos Petrol?feros Fiscales SA was considering a proposal to increase the refining capacity of its refinery in La Plata. La Plata is the largest refinery in the country with a capacity of 189,000 barrels per day.
  • Oil consumption reduced 6% from 32 million tons of oil equivalent (Mtoe) in 2017 to 30.1 Mtoe in 2018. The decline in use can be attributed to the economic slowdown in the country.
  • Argentina’s oil and gas downstream industry is expected to grow slightly over the forecast period due to an increase in oil production in the country.



Increasing Demand of Natural Gas to Drive the Market

  • Natural gas imported by Argentina decreased by 10.45%, year on year, from 5.6 million tons oil equivalent (Mtoe), in 2015 to 3.6 Mtoe in 2018, owing to the increasing gas production in the country.
  • Natural Gas Production in the country has increased substantially, by 6.1%, rising to 33.9 Mtoe in 2018 from 31.9 Mtoe, in 2017. The increase in production is due to the rise in shale gas production from Vaca Muerta.
  • Vaca Muerta, a giant shale play, is leading a recovery in the country’s oil and gas production. It has changed the scenario in the refinery business by increasing the refinery throughput. Oil production was 518 kb/d (thousands of barrels per day) in August 2019, i.e., 5.5% higher compared to August 2018. In 2019, conventional oil decreased by 3%, whereas unconventional production can be compensated for more than 58% of the decrease in oil.
  • Therefore, based on above-mentioned points, increasing consumption of natural gas is expected to drive the oil and gas downstream market in Argentina during the forecast period.



Competitive Landscape

The Argentina oil and gas downstream market is moderately consolidated. The major companies include Axion Energy , Yacimientos Petrol?feros Fiscales SA , Pan American Energy SL, Pampa Energia SA, and Raizen SA.

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