Río Negro Governor Alberto Weretilneck announced Monday that he had responded to a letter from oil and gas giant YPF’s president to explain that his province will adhere to Argentina’s new Large Investment Incentive Regime (RIGI, by its Spanish initials), and promises to offer favorable conditions for the construction of a planned liquefied natural gas (LNG) plant.

“In Río Negro we say yes to the LNG plant!” Weretilneck wrote on X.

The announcement comes days after the province became the first to formally adhere to the Large Investment Incentive Regime (RIGI, by its Spanish initials), which was passed as part of Milei’s Ley Bases.

Both Río Negro and Buenos Aires provinces are under consideration for the plant, and YPF president Horacio Marín had written to both provincial governments, asking whether they would adhere to the RIGI. Observers say Río Negro’s enthusiastic adherence to the regime could give it the upper hand. Buenos Aires Governor Axel Kicillof has been more hostile to the RIGI. On Monday, he announced he would file a separate provincial incentives bill that was interpreted by some as a would-be alternative to RIGI.

The proposed location for the plant in Río Negro would be in the coastal hamlet of Punta Colorada, near the town of Sierra Grande in the south of the province.

“We are committed to the RIGI and guarantee compliance with other key requirements, such as exemptions from municipal taxes, environmental permits, and space guarantees in ports,” Weretilneck wrote. “Río Negro is positioning itself as the most solid option to host this LNG terminal. The project not only promises significant economic and development benefits for our province but also significantly strengthens regional energy infrastructure.”

The provincial government is now waiting for YPF to evaluate the province’s response and capacity to fulfill the company’s needs, he added. “A great step that reflects our firm commitment to the energy and economic future of the region.”