Neuquén approves law and pipeline for major LNG export project in Vaca Muerta

Neuquén LNG law Vaca Muerta pipeline RIGI incentive JKM royalty index gas export project

The Neuquén legislature passed a law ratifying an agreement with YPF that sets a special fiscal regime for a large‑scale liquefied natural gas (LNG) export project in the Vaca Muerta basin. The text links royalty payments to the international JKM price index, establishing tiered rates of 7.5 % to 12 % and guarantees tax stability for up to 30 years.

At the same time, the Argentine government approved the project's inclusion in the Régimen de Incentivo para Grandes Inversiones (RIGI). The plan authorises the construction of a 480‑km, 36‑inch gas pipeline from the Cabecera Tratayén field in Neuquén to the San Antonio Oeste compressor station in Río Negro, with a total investment of US$1.3 billion. Construction is slated to start in June 2026 and operations to begin in May 2028.

The regional university (UTN‑FRN) publicly endorsed the LNG initiative, highlighting its potential to generate local expertise, research, and technical talent needed for the project’s complex operations.