Argentine energy crisis affects 5.000 manufacturing plants

Almost 5.000 manufacturing plants have suffered from the latest electricity and gas restrictions, warned Argentina’s Industrial Union, UIA, with blackouts equivalent to 40% of energy demand in a six to eight hours daily band.

UIA said natural gas restrictions were extensive to 900 companies with cuts on occasion lasting “several days”.

“Both situations have an impact on production, the production process and cause additional damages because of the complications to comply with significant stoppages for long periods”, adds UIA.

The manufacturers lobby has been collecting information on the energy situation from similar organizations in the rest of Argentina and is committed, “working with the government” to find solutions to the ever growing challenge.

Argentine energy authorities anticipated that the situation will commence “to normalize” Thursday given improved climate conditions with higher temperatures and full pressure on the gas pipelines.

“The gas transport and distribution system has begun to recover lost volume and beginning Wednesday supply will rapidly normalize”.

An estimated 5 to 6 million cubic meters per day will begin to be injected to supply manufacturing industries demand.

However CAMMESA, the regulator which administers wholesale gas provision warned that industry restrictions which drastically cut consumption between 16:00 and 24:00 hours, to privilege home consumption, remain effective Wednesday.