Horacio Marín, who defines himself as the “meritocrat” who came to the top of YPF, in an interview with Carlos Pagni said that “without RIGI there is no Liquefied Natural Gas (LNG),” and added that “without RIGI we will not be able to compete in the international market, mainly with the United States.”
It is necessary to make a parenthesis. Horacio’s merit in his new position—without detracting from his career in the sector—comes on the back of Paolo Rocca, one of the richest men in Argentina—ranked 529 by Forbes worldwide and main shareholder of the steel and oil group. Techint—, since he was his employee until last December, as CEO of Tecpetrol. Could it be the merit of economic power?
Marín, in his “peculiar and disinterested” analysis, leads to an imaginary where without the RIGI there will be no investments, but he omits that Argentina throughout history has had investments without this type of regimes involved. It is enough to look at the golden years of Néstor and Cristina to deny such a statement, which only seeks business for friends. To go deeper into this sense, see: Manual for underdevelopment.
Sepoy definitions like those of the president of YPF were commonplace during the ’90s, under the government of Carlos Menem. It is enough to remember the sayings of the former Minister of Public Works and Services, Roberto Dromi: “Nothing that should be state-owned will remain in the hands of the State.” It seems to be a deja vu of the most rancid vernacular neoliberalism of our country, which always proposes the same model: foreignize and sell the homeland in exchange for coins.
The Petronas project is a clear example that without RIGI the investments were going to arrive. Recapitulating, on September 1, 2022—the same day they attempted to assassinate former President Cristina Fernández de Kirchner—negotiations began between YPF and Petronas for the installation of a Liquefied Natural Gas (LNG) plant for export in Bahía Blanca. , Buenos Aires province.
While waiting for the LNG law, which among its articles proposes the free availability of “50% of export foreign exchange”—and which was criticized, even within Peronism—, Petronas paused the decision while waiting for the current government to approve the new regime where the availability of 100% of foreign currency is directly established after the third year. It should be remembered that the current President Milei, during his time as a deputy, voted against the LNG law. Maybe 50% seemed little to you.
In addition to these fallacious definitions and arguments, the “brand new CEO” has proposed to Governor Axel Kicillof that “if the province does not adhere to the RIGI”, the LNG plant will be installed in Rio Negro. Freedom, tightening or mafia message?
Why drop your pants with the RIGI?
This law grants firm exportation in the case of LNG, which implies exporting the authorized volumes continuously and without interruptions or restrictions; reductions or redirections for any reason during each day of the validity period of the respective export authorization. That is to say: if you need to supply the internal market, it will not be possible.
This is what Marin stated: “LNG is dedicated [a exportación]Don’t tell me, go over there, get my gas and put it on the domestic market. Get everything out of me, everything goes to export and for some excessive cold peaks of production you will have Escobar’s ship to import. And the export will be done by YPF or some company.” He further adds that “without RIGI, Argentina will not be able to compete with LNG produced from unconventional gas in the United States.”
Could it not be that LNG production in the United States to supply Europe is threatened, due to Joe Biden’s decision to suspend permits for the approval of LNG export plants with climate arguments, and that they need to obtain at a low price? Argentine gas to supply the old continent?
In this way, Vaca Muerta gas would be subject to export without the priority of internal self-supply, to the detriment of energy sovereignty. The question arises: is the RIGI the only way for investments to come? Shouldn’t we consider expanding the margins of what is possible and exploring sovereign alternatives?
On the other hand, we should ask Marín: where do the foreign exchange from the gas dedicated to export go? What will happen to internal demand, how and who covers it; at what price? Are internal energy prices equated to international prices a way for the Argentine people to “finance” the “beautiful” hydrocarbon income?
Legal and police security for the business banquet
After the approval of the basic law, its direct beneficiaries, and not necessarily foreigners, came out to celebrate: Pampa Energía, Marcelo Mindlin’s company, said: “We are very optimistic about the effects of this law and we will soon be announcing investments.” Marcos Bulgheroni, in his X account, stated: “Argentina needs investments to develop its enormous energy export potential. The Senate took a first step. It is vital that the Deputies complete the treatment of the project and approve the Bases Law to begin a path of growth and development.”
In this sense, the Transportadora de Gas del Sur (TGS), of Pampa Energía, presented a project to the Ministry of Economy to invest US$ 700 million for the expansion of the Presidente Néstor Kirchner Gasduct, built by Energía Argentina SA (ENARSA), one of the 8 companies subject to privatization. Draw your own conclusions.
International banks such as HSBC, JP Morgan and Bank of America also celebrate the approval of the law. Indications that vultures fly over the “dead cow” and the homeland.
Accordingly, the soldiers of Patricia Bullrich polish their boots and prepare their uniforms, who signed resolution 499/2024 of the Ministry of Security, with the aim of increasing the deployment of the Security Forces in the provinces and thus shielding mining activities. and oil companies in the face of possible social claims.
Bullrich said that the entire mining area of the country must be “taken care of with electronic systems,” and assured that a Gendarmerie unit will be installed in the Neuquén town of Añelo, the heart of the hydrocarbon production sector known as Vaca Muerta.
This makes it clear that the national government is preparing not only a legal framework for a colonial Argentina of the 21st century, but also preparing the repressive forces of the State to defend the businesses of a neoliberal extractivist economic model that only promises greater inequality and exclusion. social for the majority of the Argentine people.
In short, a rearmament of the national and popular field is necessary to turn the tables and stop the onslaught of these wolves, who previously dressed in sheep’s clothing and today invite us to witness, impudently, the great business banquet served by this sepoy government. and sells country.
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Nicolás Malinovsky is an Electrical Engineer (UNRC), Master in Energy Management (UNLa), Diploma in Strategic Anticipation and Risk Management (UNDEF), Director of the Energy, Science and Technology Observatory (OECYT) associated with the Pueblo y Ciencia platform . Teacher at UNPAZ. Networks: @nicomalinovsky
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