Argentina commits to reducing energy subsidies over time

Argentina is committed to reducing energy subsidies - one of the main elements of an international debt renegotiation - even amid higher import prices, but the cuts will come gradually, its economy minister said on Wednesday.

Minister Martin Guzman said in an interview at the CERAWeek energy conference that the country is prioritizing fighting inflation that has accelerated due to higher food and commodity prices.

"We are planning to reduce energy subsidies gradually," the minister said. "Obviously, the speed at which the goals are achieved will depend on how the international situation evolves," referring to the global energy crisis.

Argentina this year reached a staff-level $45 billion debt renegotiation agreement with the International Monetary Fund. The deal, which includes specific economic measures to be taken, awaits a green light from the nation's congress and IMF board.

The country is in talks with global LNG providers to secure supplies for this year, he also said.

Argentina expects to import more LNG in 2022 than last year. Amid higher global prices, it could increase its overall spending on the fuel. Argentina does seasonal imports of LNG, typically through tenders on the open market to meet demand peaks.

The country hopes to halt its LNG imports once a key gas pipeline from its flagship Vaca Muerta shale region to the north is completed. The project's first stage is expected to be inaugurated in the winter of 2023, the minister said.

(Reporting by Marianna Parraga)

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