Argentina watch: Vaca Muerta pipeline trust, gas price hikes, hydrogen, carbon bond bills

State energy company Energía Argentina – responsible for national gas transport infrastructure expansion work – inked a contract to establish a trust for the Vaca Muerta pipeline mega project.

The contract was signed with the trustee, investment and foreign trade bank Bice.

The trust, known as Fondesgas, will administer financial resources that will be used for the construction of the central duct and associated gas infrastructure projects. Energía Argentina is trustor.

The first phase of the mega project, currently at the tendering stage, is due to be paid for with public funds. The price tag for first phase work is around US$1.57bn, the government said last year.  

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Argentina’s federal energy department has drafted a resolution instructing natural gas regulator Enargas to devise and implement new residential piped-gas price tables, local paper Cronista reported.

End-user bills could climb about 20% from June 1, it said.

The resolution – which makes no mention of subsidy segmentation – has not been published yet and could be tweaked. Subsidy segmentation is part of economy ministry efforts to trim the government’s fiscal deficit.

Residential gas bills climbed about 20% in March.

The government subsidizes a large chunk of the gas production element of final bills.

ALSO READ: Argentine piped gas distributors highlight shrinking margins amid subsidy scrutiny

Annual inflation in Argentina was running at 58% in April, according to data from statistics agency Indec.

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Lawmakers in sun-drenched province Jujuy debated green hydrogen promotion and carbon bond bills. 

Provincial legislature committees, along with private sector representatives, met to put the draft legislation – presented by the executive branch – under the spotlight.

Respective objectives are establishing local production of green hydrogen and its derivatives and developing a provincial framework for carbon bonds, to spur associated projects and issuance. 

Jujuy is looking to enter the green hydrogen race, with a facility – in the studies phase – powered by a 200MW solar thermal plant.

The province is home to the 315MW Caucharí solar park and seeking to expand installed renewables capacity. 

ALSO READ: Snapshot: Southern Cone’s green hydrogen push