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Argentina Approves Two Major RIGI Projects to Process Vaca Muerta Gas

The government says the moves will add domestic value to shale gas, draw external financing under RIGI stability rules, and boost exports and jobs.

Overview

  • The RIGI evaluation committee approved the admission of Pampa Energía’s urea plant and Compañía MEGA’s liquids‑processing expansion on July 31, 2026, formalizing roughly US$3.06 billion in new commitments.
  • Pampa Energía will invest US$2.7 billion to build the 'Fértil Pampa' urea plant in Bahía Blanca, targeting about 2.1 million tonnes of urea a year, more than 3,500 construction jobs, about 300 permanent roles, and an estimated US$800 million in annual foreign‑exchange benefits when it begins operations by late 2029.
  • Compañía MEGA will invest US$360 million to add roughly 1,500 tonnes per day of NGL processing (near a 27% capacity gain), with peak construction employment near 800 jobs and expected exports of around US$190 million per year on a schedule that runs through 2028.
  • With these approvals the RIGI portfolio reaches 23 projects and about US$49 billion in committed investment, a program that grants legal and tax stability intended to lower financing risks and help developers secure external capital.
  • Next steps include securing project financing, permits and construction contracts; if executed as planned the investments should cut fertilizer imports, raise export volumes (notably to Brazil), and increase dollar inflows that the government says will support jobs and public finances.