The national Government approved the third project within the regime of incentives to large investments (Rigi)as confirmed by the Minister of Economy, Luis Caputo. It’s about “Argentina lng”an initiative that It will allow from 2027 export Liquefied natural gas (LNG) from the coast of Río Negro, with estimated revenues at US $ 2.5 billion annually for two decades.
The announcement was made by Caputo through its X account, where He described entrepreneurship as one of the world’s largest float projects. The plan plans to install two liquefaction ships in front of the San Matías Gulf, which will process gas extracted from Vaca Muerta. The Southern Energy consortium, in charge of the project, is made up of PAE, YPF, Pampa Energía, Harbor Energy and the Norway Golar Lng.
Almost simultaneously to the official announcement, Pan American Energy reported that in 2028 a second ship will be incorporated into the liquefaction system. The ship, currently under construction in China, will be added to the former, the “Hilli Episeyo”, whose operation will begin in 2027. Both will process up to 28 million cubic meters per day of gas.
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The figure represents about 20% of the total daily production of gas in Argentina, which was around 140 million cubic meters at the time of the announcement. The project was approved after the end of April the Ministry of Energy granted the free export certificate for a period of 30 years. This Friday, the National Government also confirmed its formal inclusion in the Rigi regime.
The planned initial investment reaches US $ 2.9 billion for the first 10 years and could exceed US $ 7,000 million in the projected two decades. The ships will work as floating terminals of operational liquefaction throughout the year. The gas will be transported from Vaca Muerta through a new gas pipeline Specific to the boarding point.
The project was originally raised with a land plant, but finally the floating format was chosen for its lower cost and more agile deadlines. Golar LNG will contribute maritime infrastructure, while the other companies will supply the gas. Southern Energy reported that this format will facilitate Argentina’s entry into the group of LNG exporting countries.
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From the Ministry of Economy they stressed that the initiative represents an opportunity to increase exports without subsidies or public contributions. Caputo stressed that “Argentina can liquefy 26 million cubic meters daily from 2027, and export US $ 2.5 billion per year for at least 20 years.” He also valued the role of YPF and his partners in the impulse of the project.
Participation in Southern Energy is distributed as follows: PAE 30%, YPF 25%, Pampa Energía 20%, Harbor 15%and play LNG 10%. Companies expect operations to generate employment, encourage local suppliers and add new technological capabilities. Besides, Export income of products that are not marketed abroad are expected.
The terminals will be located in the San Matías Gulf, a maritime area that will begin to have prominence within the national energy map. The project includes international maritime logistics and operations during the four stations. The objective is to access international markets with liquefied Argentine gas competitively.
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The new gas pipeline that will link Vaca Muerta with the Costa Rionegrina will be financed by the private consortium. Its layout was not announced yet, but it will be a strategic work to guarantee the continuous provision of ships. Land transport and compression prior to shipping will be included in the same scheme.
The authorization to export LNG for 30 years was granted under the new scheme of liberation of gas markets. This framework allows large -scale projects to consolidate without depending on internal consumption. It is the first certificate of this type granted by the Ministry of Energy.
With the approval of the Rigi, the project will enjoy Fiscal, customs and exchange benefits during its construction and operation stages. The official intention is to accelerate long -term investments that generate currencies and employment. There are currently a dozen more projects under evaluation under this regime.
Source: All Jujuy and Tn.
