26/06/2026 09:43 - Economia
In the early hours of June 25, 2026, the Legislature of Neuquén (a key province in Argentine Patagonia) approved the bill ratifying the agreement between the provincial government and YPF (Yacimientos Petrolíferos Fiscales, the state-owned energy company). The vote concluded with 27 votes in favor out of 35, securing a major political victory for Governor Rolando Figueroa after months of intense negotiations.
This initiative, known as the Argentina LNG project, is considered the country's most significant gas export undertaking. It establishes an unprecedented framework of variable royalties linked to international LNG prices in the Asian market, utilizing the JKM (Japan Korea Marker) benchmark—the highest gas price reference globally.
For our international readers: Vaca Muerta is a massive shale gas and oil reservoir located in Neuquén, considered one of the largest unconventional reserves in the world, similar to the Permian Basin in the USA.
YPF has a strict deadline of 24 months to confirm the Final Investment Decision (FID). If confirmed, the project will extract gas from five concessions in Vaca Muerta.
International disputes will be resolved in the International Chamber of Commerce (ICC) in Paris, ensuring legal certainty for international stakeholders, while local tax and environmental disputes will remain in provincial courts.
The ruling party secured a broad majority with support from local forces like MPN, PRO, and Neuquén Federal. Legislator Francisco Lépore emphasized that this project breaks the 'transport ceiling' limiting Argentine gas exports.
Legislator Damián Canuto (PRO) noted that "investments do not just rain down; they must be negotiated," praising the provincial government's strategic approach to attracting foreign capital.
The vote sparked significant backlash. Public sector unions (ATE, ATEN) held a 24-hour strike and marched on the Legislature, arguing that the deal constitutes a 'handover' of provincial resources without adequate compensation for workers.
Opposition legislator Andrés Blanco (Left Front) criticized the deal as a 'pact of plunder,' arguing that under the national RIGI framework (Incentive Regime for Large Investments), companies pay fewer taxes and royalties. He stated, 'This mortgages the future budget of the province.'
LNG (Liquefied Natural Gas) is natural gas cooled to -162°C, reducing its volume by 600 times. This allows it to be transported on ships to markets like Europe and Asia without pipelines. This is crucial for Argentina because local gas prices are low, while international prices (especially in Asia) are significantly higher.
The project recently saw YPF award a contract to a joint venture between SACDE and Italy's Tecnimont for the design of the separation plant, signaling tangible progress toward becoming a global energy player.
Sources: EconoJournal | La Izquierda Diario
Alfredo S. Quiroga
