LONDON May 3 UK-based BG Group said it
would review all Argentine bidders' creditworthiness before
selling them gas, after the nationalisation of energy company
YPF raised the risks of doing business there.
Despite its huge oil and gas reserves, Argentina is reliant
on imported liquefied natural gas (LNG) to meet its energy
needs, but credit ratings agency Moody's said the seizure of a
51 percent stake in YPF from Spain's Repsol
announced last month made Argentina a more risky place to do
Moody's cut its rating on YPF, which will take over
responsibility for LNG imports from state-owned energy group
Enarsa, a ruling party lawmaker said late last month.
"We are committing to Argentina supply on a case-by-case
basis ... Clearly the creditworthiness of these particular
companies (LNG importers) will determine the commercial terms
upon which we are prepared to trade," BG Chief Executive Frank
Chapman told reporters on a conference call.
He added that BG sold two cargoes to Argentina in the first
quarter of the year.
Any reduction in cargoes would hit Argentina hard as it is
already struggling to secure the 80 cargos it has estimated it
will need this year, due to high prices.
Adding to the problem, Spain's Repsol may halt the delivery
of nine ships carrying LNG to Argentina in retaliation for the
move on its stake in YPF, a source in the energy sector said on