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UTE Saved US$25 Million Through Argentine Gas Imports, Eyes Contract Changes
🇺🇾 Uruguay /Economy & Trade

UTE Saved US$25 Million Through Argentine Gas Imports, Eyes Contract Changes

From El País · (2d ago) Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

TLDR

  • Uruguay's state power company UTE saved US$25 million by importing natural gas from Argentina between December and April.
  • The savings were realized by using the previously disused Gasoducto Cruz del Sur, avoiding the use of more expensive gasoil.
  • UTE is considering a new contract model for permanent gas supply and is also investing in solar energy expansion, with a new 75 MW solar park planned.

UTE's strategic decision to reactivate the Gasoducto Cruz del Sur has yielded significant financial benefits, saving the state power company US$25 million in just five months. This move underscores Uruguay's commitment to diversifying its energy sources and optimizing costs by leveraging regional resources.

The successful utilization of natural gas from Argentina highlights the potential for inter-country energy cooperation. The savings achieved by switching from gasoil to natural gas demonstrate a clear economic advantage, prompting UTE to explore a more permanent contract. This shift not only benefits UTE but also positions Uruguay to potentially support neighboring energy systems.

We are discussing a new contract modality.

— Roberto BentancorUTE's vice president, Roberto Bentancor, discussing the potential for a permanent natural gas supply contract.

Beyond natural gas imports, UTE is aggressively pursuing renewable energy goals, particularly solar power. The planned 75 MW solar park in Melo represents a substantial investment in clean energy infrastructure, further solidifying Uruguay's leadership in sustainable energy solutions. This expansion is expected to enhance grid stability and facilitate energy exchange with Brazil, aligning with national objectives for energy independence and regional integration.

The park allows interconnection with Brazil and supports the systems.

— Luis GarcíaUTE's general manager, Luis García, speaking about the new solar park's role in regional energy exchange.
DistantNews Editorial

Originally published by El País in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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