The economist made these statements while leading a press conference at the Government House, in La Plata. In this way, he referred to the statements of the president of YPF, Horacio Marínwho expressed that, to begin negotiations to install the LNG plant in Bahía Blanca that is planned to be built together with Petronas, to promote the export of gas from Vaca Muerta, formerly the province of Buenos Aires must join the RIGI or else it will be done in Punta Colorada, in the province of Río Negro.
“Sometimes it seems that the government in power appears by spontaneous generation and makes decisions as if there were no previous history, a process, plans, an evaluation. This is not the case, in this case it is a virtuous history of State planning: we have been dealing with this issue for more than 10 years, very seriously,” Kicillof began.
He recalled that “the possibility of building an LNG plant in Argentina arose with the recovery of YPF and the launch of Vaca Muerta. This requires seriousness, technical work and discussion.”
The renationalization of YPF
And he considered that this is an issue “too important for our province and our country to treat it lightly, to entangle it in current or partisan discussions.”
He pointed out that “they are thinking about building an LNG plant in Bahía Blanca because there is the possibility of exporting liquefied gas. This is because the production of unconventional gas in Vaca Muerta was launched in 2012, with the recovery of YPF, based on different agreements and productive plans that were carried out” and added that work has been done in this regard since 2017. .
“It was not born from a cabbage, but has been in the works for a long time. In fact, on September 1, 2022 – the day of the attack on Cristina (Kirchner) – the investment was announced with Petronas and YPF authorities in Bahía Blanca. Then, Work began on a promotion law for investments in LNG, with fewer benefits than those offered todaywhich had a half sanction in Deputies,” he indicated.
The governor emphasized that “The investment was approved without RIGI. When the investment project was announced in 2023, it had already been approved by the board of directors of companies without RIGI. We have a key and a lesson there: there was a huge investment, which was already defined without RIGI and now with that Regime they are seeking to give them many more promotional benefits.”
Criticism of the benefits of RIGI
He maintained that “they are given additional exorbitant benefits that they have not asked for, nor do they need, nor do companies or private individuals from abroad” and believed that these are “losses for the Argentine people, for the republic, for the country.”
In this regard, he stated that the extension of jurisdiction, contemplated in the project, “It means that any dispute regarding the regime will be discussed in foreign courts.”which are often favorable to those who litigate against Argentina, without taking into account Argentina’s arguments.”
For this reason, the governor considered that “it is an obvious transfer of sovereignty”, despite the fact that the ruling party says that it is “so that investments come.”
“Comparing the law that existed for LNG and the RIGI. The RIGI is a promo, a 2×1. When it comes to investments already decided, we ask ourselves why, for what and for whose benefit it is made,” he highlighted and reiterated that “The RIGI is a regime unfavorable to national interests and, sometimes, as in this case, unnecessary because andThe investment in Bahia had been announced.”
img-press-First-Gas-for-PETRONAS’-First-Floating-LNG-Facility-01.jpeg
Petronas plans to bring one of its two LNG vessels to Argentina and build two more in the future.
In this way, the president stated that “it is a priority for the province, for the region and Bahía Blanca that this investment is made. That’s why, I don’t think this should be exacerbated by temporary discussions. The politicking game must be outside of this”.
Then, in response to the PRO and La Libertad Avanza legislators who asked the province to adhere to the Regime, he explained: “The RIGI is being treated. It has been modified, not approved yet. It is difficult for us to pronounce on something that is not law, that does not exist” and he pointed out: “It is difficult for us to ask the Legislature to discuss the province’s accession to a regime that does not yet exist.”
Marin’s words
“Without the RIGI there is no LNG,” said Marín in an interview with LN+. Kicillof promotes the installation of the plant in Bahía Blanca, and his Rio Negro counterpart, Alberto Weretilneck seeks to move the initiative to Punta Colorada.
In this framework, Marín clarified that if Buenos Aires does not adhere to the RIGI, there is no way for the project to be carried out in Bahía Blanca. “Obviously they have to adhere to the RIGI. If they do not adhere to the RIGI, the discussion is over. If the Province does not adhere, there is no need to discuss anything, it will go to the province that adheres to the RIGI. It is obvious, who is going to put up the money if not? “He said.
“When we say where it is most profitable, the people from YPF who work in LNG are going to get together with the people from Petronas and, once the decision is made, I am going to personally go to each of the governors, I am going to show them the numbers and then I’m going to make it public. It is the procedure and everyone knows it, no one is playing strange here,” Marín explained.
