The European Union said that it hopes to sign an energy memorandum of understanding with Argentina “soon,” as the region looks to tackle energy supply issues triggered by the war in Ukraine.

The EU’s foreign policy chief, Josep Borrell, told journalists during a visit to the southern country that the agreement is key because Argentina “is a budding energy power” at a time of high international prices.

Argentina has one of the world’s largest reserves of unconventional gas and is looking for new investments to increase its exports.

“We are making progress on a memorandum of understanding for energy issues. I hope it can be completed soon. We are not talking about years or months: there is a clear mutual interest,” said Borrell.

Europe has begun to look for new suppliers of energy and food, after the start of the war between Russia and Ukraine.

Argentina “has enormous gas deposits, but it has no way of exporting it. It is a very large gas power, potentially speaking. Many investments must be made,” added the European official.

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Source: Reuters (Reporting by Nicolas Misculin; Editing by Muralikumar Anantharaman)