Energy sector will have the major demand for machinery in Argentina in 2023Mining and construction equipment
The year will have millionaire investments both in the hydrocarbon industry and in the extraction of lithium and copper. Last year, the demand for machinery grew and the projection is that the pace will continue
The energy sector will be one of the most relevant for machinery rental in Argentina in 2023. In the hydrocarbon industry, as well as in the extraction of lithium and copper, million-dollar investments are expected, which will result in a significant demand for equipment rental. Some rental companies even estimate that orders will increase by 50%.
Rental director at San Blas Group, Luis Rodríguez, informed to Rio Negro newspaper, that the energy boom that began in 2022 and will grow in 2023 are generating a number of rental requests to meet the infrastructure works around the deposits in the north and the gas exploration tasks at Vaca Muerta, the world’s second-largest shale gas reserve and fourth-largest for unconventional oil.
After completing historic production at the site, by 2023 companies are projecting investments of about $7.5 billion in training, up 26% from last year, according to the governor of Neuquén, Omar Gutiérrez. In turn, the work began on the Néstor Kirchner gas pipeline and the Duplicar Plus project start-up at Oldelval.
At the same time, lithium production is booming in the provinces of Jujuy, Saltan and Catamarca. It currently has two projects in commercial operation: Salar de Olaroz, in Jujuy, by Australian company Allkem; and Fénix in Catamarca, by the North American company Livent. According to information from Rio Negro, there are three more projects that are advanced and expected to invest $1.392 billion by 2023. And more than 30 projects in the feasibility, pre-feasibility, preliminary economic assessment, and advanced exploration phases in the region, such as Eramine, Galaxy, Exxar, Posco, Mariana, and the Chinese company Ganfeng Lithium.
The companies take advantage for renting because they choose to outsource the service, as well as for start-up, maintenance and finding spare parts for these machines that work in very hostile conditions. To get to the bases in Jujuy, the telescopic handlers and work platforms have to be transported up to 4,000 meters in height, on very complicated roads, and arrive in an area with a temperature range of 45 °C to -15 °C.
Luis Rodríguez informed that this year, with a political scenario of uncertainties in Argentina, besides an economic context with high interest rates that discourage investment in equipment, the company projects a 50% increase in demand.
By: Santelmo Camilo