Sebastián D. Penelli 
A liquefied natural gas (LNG) plant set to be a joint investment by oil and gas giant YPF and Malaysian state-owned company Petronas will be built in Río Negro, according to exclusive information obtained by Herald sister publication Ámbito. YPF sources said that although there is still no official confirmation, there will be news soon.
The plant will be located in the area of Punta Colorada, in the Patagonian town of Sierra Grande, Río Negro province. An old, unused port with an outlet to the Atlantic Ocean will also be developed and modernized.
The port located in Golfo San Matías offers special advantages for the access of large vessels, with a 40-meter depth seven kilometers from the coast, which allows free access without interference. Accessibility to national route number 3 and the San Antonio Oeste Airport is an additional bonus.
The decision to install the plant in Río Negro over the initial proposal to build it in Bahía Blanca, Buenos Aires province, was made after an in-depth study commissioned to an international consulting firm. The Patagonia province became the first to officially adhere to the Large Investment Incentive Regime (RIGI) last July 12. This step was a crucial advantage over Buenos Aires.
The relationship between YPF and Petronas
Petronas is the second most important partner for YPF in terms of investment volume. The relationship started at the end of 2014 when they signed a partnership for the development of unconventional oil field La Amarga Chica in Vaca Muerta, Neuquén, where the Malaysian state-owned company has invested U$S1,5 billion.
The YPF and Petronas project is part of the so-called 4×4 plan of the state-owned oil company, a 10-year action plan that contemplates an investment of US$10 billion.
“Today could be a great day for the people of Patagonia. The port in Río Negro will be a great opportunity for the region,” Neuquén Governor Rolando Figueroa said Tuesday in a sector-related meeting before the news was known.
Río Negro want to solidify itself as a mining and energy hub
In its presentation, the Río Negro government highlighted the presence of 670 mining quarries in its territory where silica sands, as well as raw materials for concrete and synthetic products, can be extracted. The province currently has 3 treatment plants and 5 producing companies that develop 2.5 million tons per year.
The proposal would revalue the energy development of the province as it contemplates the construction of a new route to Vaca Muerta, which implies the development of a 24.2 kilometer-long stretch from the intersection with provincial route 17 and provincial route 8. It would connect with the Oldelval oil pipeline, the crossing with the Cañadón El Nene pipe, and the Shell plant pipeline.
From there, a new 95 kilometer section would be built from the outskirts of General Roca to the intersection with provincial Route 8, running parallel to the Oldeval-Gasoducto NEUBA pipeline.
