Bulgheroni requested the RIGI to export liquefied gas with investments of US$ 2.9 billion in 10 years

The oil company Pan American Energy (PAE) together with the Norwegian company Golar LNG -in a commercial company called “Southern Energy“- he presented to the Government this Thursday his request to join the Large Investment Incentive Regime (RIGI) to develop Liquefied Natural Gas (LNG) in the province of Río Negrowith private disbursements for $2.9 billion over the first 10 years.

The project foresees an investment of more than US$ 1,650 million during the first phase (2025-2031), while in the second stage (2032-2035) it amounts to almost US$ 1,250 million more, for a total of US$ 2,900 million .

Throughout its 20-year useful life, the total planned investment is almost US$ 7,000 million. The gas that PAE will use is from its own production in the Austral Basin, in fields offshore (offshore), where it is associated with the French TotalEnergies and the British Harbor Energy.

To compensate for this fluid, which is transported by the San Martín Gasduct throughout almost all of Patagonia, PAE will produce more gas in Vaca Muerta.

However, they are already 6 projects that asked to enter the RIGI, with investments exceeding US$ 7.9 billion over a period of 10 years.

At the family company Bulgheroni anticipates that it will begin exporting liquefied gas from 2027 on a seasonal basis during the summer months. However, the president of YPF, Horacio Marín, commented this week that they are working on an agreement so that these sales abroad take place every day of the year, with an increase in the volume sold.

The project is designed to be scalable. It will begin with a production of 2.5 million metric tons per year (MTPA) of LNG with a barge that will carry out the liquefaction procedure – cooling to 161 degrees below zero to compress its volume 600 times and facilitate its transportation – and will be able to grow. .

After announcing in July that it would be the first oil company to begin exporting liquefied gas for several months a year -YPF did so occasionally between 2019 and 2020, with small shipments-, PAE chose Golfo San Matías, in Río Negro, as the location to install the project.

It is the same place that YPF and the Malaysian state oil company had selected, Petronasfor its mega project of between US$ 30,000 million and US$ 50,000 million of investments, for Vaca Muerta gas, which until now was not formally approved. Petronas is about to withdraw from the project and the Anglo-Dutch Shell could take that place, according to what the national government hinted at.

The PAE project with Golar will favor the creation of more than 600 new direct and indirect jobspredominantly of local origin, during the construction.

Meanwhile, in the stage of operation will be generated around 850 jobs directly and indirectly. There will be a high participation of local suppliers, who will provide more than 50% of the goods and services required during the operation of the project.

An active policy will also be developed to develop local suppliers with the objective of promoting the generation of added value in Argentina, the company reported.

Marcos BulgheroniGroup CEO of Pan American Energy Group (PAEG), said that “the RIGI made it possible to strengthen the regulatory framework so that it is stable and promotes legal security for investments. All of this is essential to give clear signals to an industry that invests sustainably in the long term and for projects like ours to become a reality.”

The gas resources available in Argentina far exceed domestic demand and regional exports and, in turn, there will be a growing demand for LNG worldwide in the coming years.

The project, being the first of its kind in the country on a sustained basis, will allow progress in the learning curve of the LNG value chain, generating the confidence and experience necessary to develop larger scale projects.

So far, the 6 projects that were presented to the RIGI come from mining and energy, as was discounted. Are:

1. YPF Luz – Renewable energies: 220 million dollars for a solar park in El Quemado, Mendoza.
2. Galan Lithium – Mining: US$ 200 million for lithium chloride in Catamarca.
3. Posco – Mining: US$ 1,000 million for lithium hydroxide in Salta.
4. Minas Argentinas SA – Mining: US$ 1,000 million for gold, silver, industrial lime and a solar park in San Juan.
5. Vaca Muerta Sur Pipeline (VMOS) – Oil and gas: US$ 2,528 million for energy infrastructure in Río Negro.
6. Southern Energy (PAE and Golar) – Gas: US$ 2.9 billion to export liquefied gas in Río Negro.