Argentina approves two new energy projects under RIGI, boosting Vaca Muerta gas utilization

Argentina's government has approved two significant new projects under its incentive regime for large investments (RIGI), signaling a boost for the country's energy and agricultural sectors. Economy Minister Luis Caputo announced the inclusion of these initiatives, which bring the total number of RIGI-approved projects to 23, with a combined committed investment of $49 billion.

The first project involves Pampa Energía constructing a fertilizer plant in the Bahía Blanca Industrial Pole. This $2.7 billion investment is set to become one of the largest of its kind globally, with a projected annual production of 2.1 million tons of granulated urea by the end of 2029. The plant will add value to natural gas resources and is expected to generate over $800 million in annual export revenue, primarily targeting Brazil's substantial urea import market.

"The legal and tax stability provided by the RIGI allows us to access the necessary external financing to carry out record investments," said Marcelo Mindlin, president of Pampa Energía. He highlighted that Pampa's and TGS's four main projects alone sum up to nearly $11 billion in investment, aimed at transforming Vaca Muerta's gas potential into jobs and foreign currency.

In addition, Compañía MEGA received approval for a $360 million expansion project. This investment aims to increase its natural gas liquids production capacity by 1,500 tons per day, a crucial step to support the growth of the Vaca Muerta unconventional oil and gas play. The expansion is projected to create 800 jobs and generate $190 million in annual exports.

MEGA's project will boost its total production by approximately 27%, with about 80% of the additional volume destined for export markets, including LPG and natural gasoline. The remaining 20% will serve the domestic market, mainly as ethane for the local petrochemical industry. MEGA operates a unique pipeline in Argentina dedicated to transporting natural gas liquids from the Neuquén Basin to the Bahía Blanca petrochemical hub and deep-water port.

“

The legal and tax stability provided by the RIGI allows us to access the necessary external financing to carry out record investments. The four main projects of Pampa and TGS sum up to nearly US$11 billion in investment to transform the potential of Vaca Muerta gas into new jobs and more foreign currency for Argentina.