Buenos Aires Herald 
Buenos Aires Province Governor Axel Kicillof announced on Monday that he will submit a bill to the Buenos Aires Province Legislature to create a “Provincial Regime for Promoting Strategic Investments.” It will offer “tax stability for a period similar to the national regime,” along with other benefits, he said.
Kicillof, who opposed the creation of the Incentive Regime for Large Investments (RIGI) under the Bases Law, unveiled the local initiative at a press conference at the provincial government headquarters in La Plata.
It comes as his province vies with Río Negro to be the site of a new LNG [liquefied natural gas] plant on the Argentine coast, a proposed project by Argentine oil and gas incumbent YPF and Malaysian hydrocarbons giant Petronas. The terminal would facilitate gas exports from Argentina’s vast Vaca Muerta shale oil and gas field.
“Today, we have decided to submit a bill for a Provincial Regime for Promoting Strategic Investments related to large investments, production, and employment in Buenos Aires Province,” Kicillof said. “We also propose improvements to the tax regime for large investments and to work through an executive unit to streamline each of the project’s needs.”
He added that the provincial government would continue working “with seriousness and prudence to ensure the construction project of an LNG plant in Bahía Blanca is carried out.”
In this regard, he explained that “before the approval of RIGI, the president of YPF sent us a letter with several inquiries. Today, we are sending a note with our response.”
“Many of these requests exceed the powers of the provincial Executive Branch, as they involve laws that must be addressed by the Legislature and decisions of the municipality of Bahía Blanca,” he commented.
Regarding the bill to create a local regime, he stated that it “aims to encompass the requirements that companies need to carry out the project in Bahía Blanca. It includes tax stability for a similar period to the national regime and proposes improvements to the tax regime for large investments.”
He added that “we have sent a request to both companies [YPF and Petronas] to obtain more information, as at this time we do not know the details of the project, its stages, duration, and investment schedule.”
“Today, the ball is in their court. We await a response and make one thing clear: we will make every effort within our reach to ensure this investment in Bahía Blanca can be realized.”
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The project to create an LNG plant sparked a conflict with Río Negro, the other province where it could be built.
For this reason, Río Negro Governor Alberto Weretilneck decided to support both the Bases Law and the fiscal package with the vote of his senator, Mónica Silva.
This Monday, Weretilneck revealed that last Friday, his province responded to the letter from YPF’s president, Horacio Marín, regarding the installation of an LNG plant in Punta Colorada, Sierra Grande.
“We committed to adhering to the RIGI and guaranteed compliance with other key requirements, such as exemptions from municipal fees, environmental permits, and guarantees of land in ports,” the governor stated.
He said that “Río Negro positions itself as the strongest option to host this LNG plant. This project not only promises significant economic and developmental benefits for our province but will also substantially strengthen regional energy infrastructure.”
“With optimism, we await YPF’s evaluation of our response and Río Negro’s capacity to meet the established requirements. It’s a big step that reflects our firm commitment to the energy and economic future of the region,” he concluded.
