Cautious optimism

Investors in Argentina are starting to see the attractiveness of that country's gas market return. Expected shortages in the future are driving forward stalled plans to integrate the Southern Cone's gas markets, although Chile is finding itself increasingly isolated from the process, reports Robert Olson

IN ARGENTINA, where other investors see poor returns and political meddling, Total's America's upstream boss, Phillipe Arnaud, is cautiously optimistic. The country, which boasts Latin America's largest domestic natural gas market, could, he says, become an exciting place to do business over the next five years. While the adoption of more business-friendly policies by the government of Nestor Kirchner has improved the immediate climate for investors, Arnaud is looking more to the future, when gas production in the relatively mature Neuquén basin begins to decline. 'If you look at the medium-to-long term supply situation, there is a growing deficit in gas supply in [central] Argentina,' he sa