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Peace in Patagonia: Chubut and Río Negro End 25-Year Dispute with Massive Power Grid

22/07/2026 21:44 - Politica

Chubut Río Negro Weretilneck Ignacio Torres Comarca Andina

A Historic Step for Energy in Patagonia

By signing an agreement in El Bolsón, the Argentine provinces of Chubut and Río Negro have left behind a judicial dispute spanning more than 25 years, transforming a massive financial debt into key infrastructure for regional development.

The Origin of the Conflict

The dispute dates back to 1991, when both provinces and the state-owned Gas del Estado signed an agreement for the construction of the Cordillerano Gas Pipeline, specifically the Pilcaniyeu-Esquel section. According to provincial reports, Río Negro failed to pay its 50% share of the materials. This forced Chubut to cover the total cost, leading to a lawsuit that eventually reached the Supreme Court of Justice of Argentina.

The Financial Agreement

The Debt Recognition, Strategic Work Compensation, and Payment Plan Agreement establishes that Río Negro will pay Chubut a total of $27,463,744,434.59 Argentine pesos. From this amount, $17,361,583,342.49 Argentine pesos will be directly allocated to the electrical interconnection project, while the remaining balance of $10,102,161,092.10 Argentine pesos will be canceled through a structured payment plan.

Infrastructure Project Details

The project involves a 33 kV double-circuit underground line connecting the El Coihue (Chubut) and Golondrinas (Río Negro) transformer stations, spanning 26 kilometers. Additionally, the Golondrinas Transformer Station will be expanded, and a new Cerro Perito Moreno Transformer Station (33/13.2 kV - 10 MVA) will be built.

Replacement of Aerial Lines: Old wooden poles, highly vulnerable to storms, heavy snow, and forest fires, will be removed.
End of Thermal Generation: The El Bolsón Thermal Power Plant will be decommissioned, reducing operational costs and environmental impact.
Cutting-edge Technology: Incorporation of fiber optics for remote monitoring, allowing faster fault detection and restoration.

"Until a few years ago, Lago Puelo was known as the 'national capital of power outages'. This project completes a scheme that will allow the entire Andean Region to leave behind a suffering of so many years"
Ignacio Torres, Governor of Chubut

Regional Impact and Joint Effort

Governor Alberto Weretilneck highlighted that "beyond the geographical boundaries of both provinces, we are all Patagonians". The project will improve the quality of life in localities such as El Bolsón, El Hoyo, Lago Puelo, Epuyén, Cholila, El Maitén, and Esquel. Authorities anticipate that construction work will begin within the next 15 days.

The comprehensive investment plan, combined with other strategic initiatives such as connecting the Cordillerano Gas Pipeline with the San Martín Gas Pipeline, exceeds $30,000 million Argentine pesos. This joint effort has already allowed more than 12,000 families to access natural gas service for the first time, directly benefiting the local hotel industry, gastronomy, and the broader economy.