Argentina Faces Natural Gas Supply Challenges Amid Historic Cold Spell

Argentina is facing significant challenges in its energy sector as the government enforces a restriction on natural gas supply for industrial consumption. The decision comes as households across the country ramp up energy usage to combat what is described as the coldest weather in three decades.

According to the National Gas Regulatory Entity, or Enargas, demand on Wednesday soared to an expected 25% above last year's figures for the same day. This unprecedented demand has led to disruptions, with distributors having to cut supplies to compressed natural gas (CNG) contracts and industrial operations.

President Javier Milei's government, which has implemented cuts to energy subsidies in a bid to control public spending, points to inadequate infrastructure investment as a root cause. The cold has also brought unexpected snowfall to Argentina and neighboring countries like Chile and Uruguay.

(With inputs from agencies.)