Bloomberg Línea — Argentina is aiming to ramp up its liquefied natural gas (LNG) production and become a major exporter of the fuel, taking advantage of the second largest unconventional gas reserve in the world, located in Vaca Muerta, and of the fact that European countries are seeking to wean themselves off the supply of Russian gas following the invasion of Ukraine. President Alberto Fernández is currently in Europe courting such partners, having met with Spain’s Prime Minister Pedro Sánchez and German Chancellor Olaf Scholz.
Colombian airline Avianca Group International Ltd and Brazil’s Gol Linhas Aereas Inteligentes SA (GOL) have agreed to merge. Major shareholders of both companies signed an agreement Wednesday that will create a “leading air transportation group throughout Latin America”, according to the joint filing, and which will position itself as a competitor to regional carrier Latam Airlines.
On the region’s stock markets, Argentina’s Merval (MERVAL) again posted the strongest gains in the region, climbing 2.49%, while the Brazilian and Mexican markets also posted gains.
Following is a roundup of Wednesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Argentina is aiming to ramp up its liquefied natural gas (LNG) production and become a major exporter of the fuel, taking advantage of the second largest unconventional gas reserve in the world, located in Vaca Muerta. The aspiration will require two fundamental elements: the development of the necessary infrastructure, and the capture of commercial partners, and President Alberto Fernández is currently in Europe courting such partners, having met with Spain’s Prime Minister Pedro Sánchez and German Chancellor Olaf Scholz at a time when European countries are seeking to wean themselves off the supply of Russian gas following the invasion of Ukraine.
Bolivia
- Unlike neighboring Chile and Argentina, Bolivia is not typically recognized in international markets for its wine production. However, vineyards of the Tarija region have attracted the attention of investors, with production having been boosted with state-of-the-art technology, and the region’s wines have begun to garner international recognition.
Brazil:
- Brazil’s Gol Linhas Aereas Inteligentes SA and Colombian airline Avianca Group International Ltd have agreed to merge. Major shareholders of both companies signed an agreement Wednesday that will create a “leading air transportation group throughout Latin America”, according to the joint filing, and which will position itself as a competitor to regional carrier Latam Airlines. The resulting company will be called Abra Group, and both Avianca and Gol will maintain their brand names. Roberto Kriete will serve as chairman of the board of directors of Grupo Abra, a Salvadoran businessman who headed TACA airline in the 1980s, which merged with Avianca in 2009, and also founded low-cost airline Volaris.
Chile:
- Latam Airlines Group has reached an agreement with local bondholders in Chile and a U.S. creditors committee that paves the way for the confirmation hearing of the company’s proposed restructuring plan to exit Chapter 11 bankruptcy proceedings in the United States, and which will be held on May 17-18. The regional carrier had sought bankruptcy protection as a result of the collapse of air travel during the pandemic.
Colombia:
- Colombian discount chain Justo & Bueno has formally requested it enter into liquidation in view of the imminent breach of commitments with its creditors. The retail chain had only recently announced an injection of capital that it hoped would serve as a lifeline to recovery and aid its regional expansion.
Dominican Republic:
- The crypto world in the Dominican Republic has yet to be regulated, but is not illegal. Giuliano Simó Marra, CEO and founder of BitcoinRD, talks to Bloomberg Línea about how he plans to promote the use of crypto in the country.
Ecuador:
- Finance Minister Simón Cueva announced Wednesday that Ecuador and the International Monetary Fund (IMF) have reached an agreement regarding the fourth and fifth review of the extended facility that the country has maintained with the IMF since September 2020, and which paves the way for a further disbursal by the lender, and which will total $1 billion.
Mexico:
- A trade union at General Motors’ (GM) truck plant in Mexico has reached an agreement with the company on a new collective contract that hands workers wage increases above inflation.
Panama:
- Panamanian goods exports totaled $3.55 billion in 2021, an increase of 108.2%, or $1.84 billion, over 2020, the country’s statistics bureau INEC reported.
Uruguay:
- Uruguay received a total of 391,683 visitors during the first quarter of 2022, of which 60.2% were Argentines, and who left an economic footprint of $236 million in U.S. dollars, according to data presented Wednesday by the Ministry of Tourism.
