Despite of strong support that the Government of the president Javier Miley received from the most powerful businessmen of the energy sector in the country, the red circle once again showed that your alignment is not free. She warned that the “falling in love with the short term” and the rule change of game are obstacles that could play tricks on business and investments. Not avoiding rate updates answers the first; The Bases law and the eventual bond for the payment of Cammesa’s debt with companies are at the forefront of the concerns of the second objection.
The conclave, where the establishment energetic it met in full general para of the CGTwas held at the Alvear Palace Hotel in Buenos Aires and was organized by LIDE, under the name of VI National Forum on Energy, Freedom & Energy Security. Owners and representatives of the most powerful companies operating in Argentina were there, such as the owner of Pan American Energy (PAE), Alejandro Bulgheroni; the president and CEO of YPF, Horacio Marin; the president of Tenaris for the Southern Cone, Alejandro Martínez Álvarezand the CEO of Tecpetrol, Ricardo Markus (both from the Techint Group); and the CEO of AES Argentina, Martin Genesio; among others.
Debate over the Bases Law and the fiscal package: the Senate entered the intermission and the Government’s time is extended
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The closure was left in the hands of the LIDE representatives, due to the miss you of the chancellor, Diana Mondino; and the Secretary of Energy of the Nation, Eduardo Rodríguez Chirillo. The head of Argentine diplomacy had announced her absence, with a personal contact with the president of the entity, Rudolph of Philip. But the officialwhich depends on the Minister of Economy, Luis Caputo, “stopped answering phone calls and messages” that they did to him in the last part of the match. The speculation was a delay in his intervention in the Senate of the Nation, within the framework of the parliamentary debate on the Base Law. He drew attention to the stand-up, without prior warning.
Resolution 58 at the center of discord
“Everyone knows that in this past week, we had a resolution through which decided not to respect certain contracts and make a payment from the table to the electric generators, taking a reduction, let’s say, on that payment. That It is a very bad sign and I can tell you from one place, which is this. We are one of the few large multinational companies in the sector. And to give a specific example, yesterday I I received calls from the Monetary Fund, the United States Department, the United States Department of Energy and the Embassy. And the question was only one: “What happened?”, “Why did the Government do this?” I give this concrete example so that we realize that, when a contract is not respected, the impact is gigantic,” Genesio warned.
The CEO of AES was one of the few speakers who hinted at criticism, amidst praise for the policy of opening markets and updating prices. As expected, the sector is fertile ground for the Government, although Doubts about the continuity of increases in public services to avoid an inflationary flash put the circle on alert energetic red: “It is very relevant (sic) that regulations are created that are adapted to the present, but stable in the long term; and that contracts are respected.”
Businessmen classified the CGT strike as “unjustified” and estimated losses of US$1.5 billion
Days ago, Minister Caputo decided a debt payment schedule maintained by the Administration Company of the Wholesale Electricity Market (Cammesa) with the energy generators of the country, which totals around $600,000 millionwhich contemplates the deferral of commitments accumulated between December and January with a dollar bond that matures in 2038which quotes with a parity of 50%. The Association of Electrical Energy Generators of the Argentine Republic (AGEERA) rejected the move of the head of the Treasury Palace and this discomfort crossed the entire arc of businessmen gathered on the day of the CGT strike.
Clear rules of the game and RIGI, the requirements for investments
Bulgheroni, boss of PAE, was forceful: “Milei is on the right path, this new Argentina is a land of opportunities”. He also touched on the energy transition and the critical challenges in carrying it forward, such as the availability of essential raw materials. “There is still no capacity to replace fossil fuels in the short or medium term,” he said. He highlighted the increase in global demand for liquefied gas expected for the coming years and the possibility that this opens up for the country, emphasizing the importance of “stability, clear rules and a stable macroeconomy”. “This is not possible if Congress does not enact laws that provide long-term predictability”he said, referring to RIGI.
The forum coincided with a special moment for the industry, while Congress defines the approval of the Base Law that contemplates the Large Investment Incentive Regime (RIGI), considered “key” for the development of the sector. Marín, president of YPF, warned of the decisive role that the approval of said regime has for the development of Liquefied Natural Gas (LNG) in Vaca Muerta and for Argentina to become the fourth or fifth player worldwide. “Without the RIGI, there is no liquefied natural gas project. Without RIGI it is not competitive,” Marín emphasized, after detailing the 4 x 4 Plan (4 years) promoted by the state oil company.
The Government relativized the CGT strike and announced that it will prosecute complaints for alleged pressures
Markous, from Tecpetrol, highlighted the projection of doubling both oil and shale gas production from Vaca Muerta by 2030: “We have the technology, geology and talent to achieve it. Argentina can reach 2,000 million barrels per day in Vaca Muerta; “It has the capacity to supply internally and export to neighboring countries,” he expressed. His co-team from Gurpo Techint, Martínez Álvarez, expanded on the positive global outlook for the oil and gas market and the opportunity for Argentina. “Argentina has the opportunity to be a strong player as an energy exporter. Proof of this is that the energy sector explains more than half of the financial surplus of the first quarter, of $275 million,” stated De Felipe.