Argentine province greenlights Rigi bill

Lawmakers in Argentine province Río Negro approved on Friday, with a vote of 35-10, a bill adhering the jurisdiction to the federal government’s Rigi investment incentives regime.

Río Negro, which becomes the first province to do so, is eying midstream hydrocarbons investment.

Adhesion, which may result in the reduction of some provincial autonomy, is required to obtain the benefits of large investments, particularly lithium in the northwestern provinces and LNG in Patagonia.

A key national project mulled by state-controlled hydrocarbons company YPF involves exporting LNG. According to previous comments from YPF, the project involves initially exporting LNG from Punta Colorada, Río Negro, via floating units. A further stage involves construction of a fixed liquefaction plant, with Río Negro and Buenos Aires province both vying for the investment.

YPF is also planning to export oil from Punta Colorada.

Qualifying projects will receive tax, customs and forex benefits, with legal and regulatory stability established for 30 years.

Projects have up to two years to adhere and have to deploy, within two years, at least 40% of the minimum investment agreed.

Secondary legislation guiding the implementation of Rigi is pending.