Mendoza Positions Itself as Energy and Mining Hub with Updated Hydrocarbon Regulations
Mendoza's Minister of Energy and Environment, Jimena Latorre, presented at the Mendoza Energy Summit 2026 the provincial strategy to position itself as an energy and mining hub over the next five years, with emphasis on attracting private investment through modernized regulatory frameworks and legal certainty conditions.
During a presentation titled "Mendoza, Energy and Mining Province: Investment Strategy and Management Agenda," held at the Hilton Mendoza and moderated by Julián Guarino, director of Shale24, Latorre outlined a panorama of changes in the province's productive matrix. "Private investment is welcome in the province with clear rules, clear conditions, and legal certainty," she stated.
A New Hydrocarbon Law to Maximize Production
The provincial Executive sent to the Legislature a bill to replace the Hydrocarbon Law in effect since 2006, adapting the framework to technological and regulatory changes over the past two decades. Latorre explained that the modification of national legislation through the Bases Law transformed the sector's central objectives: "We stopped talking about self-sufficiency, about energy sovereignty, and moved to talking about maximizing production and maximizing revenue. That changes the entire regulatory scheme," she said.
The provincial bill proposes a more flexible framework for royalties and investments, explicitly incorporates unconventional operations in Mendoza's Vaca Muerta, establishes incentives for mature areas and enhanced recovery, updates environmental obligations, and strengthens oversight mechanisms.
Latorre emphasized that the priority is for companies' resources to reach the fields: "The focus is on investment. We prefer that capital go to the field, develop those resources, certify reserves, expand our productive capacity through greater exploration." She noted that this strategy will directly impact provincial revenues, as increased exploration and investment can expand production and, with it, the base upon which royalties are generated.
New Oil Map and Expansion of Licensed Areas
Latorre linked the regulatory update to the transformation already observable among provincial operators. She explained that the process responds both to bidding rounds promoted in recent years and to the reorganization of conventional assets resulting from the Plan Andes. "There is a different map and I believe it is more atomized. That gives Mendoza a very interesting dynamic," she said.
Over the past two years, the Province conducted two bidding rounds that allowed it to award nine new areas between exploration permits and production concessions. "We are convinced that if there is greater exploration, there will be greater production. Expanding those frontiers could allow us to have greater exploration," she stated.
The minister also identified infrastructure as a constraint on growth: it will be necessary to better utilize existing capacity and advance new works to allow evacuation of additional production.
Renewable Energy: Growth Toward the Gigawatt
Mendoza incorporated nearly 800 MW of installed solar capacity, with projections to reach around one gigawatt of solar capacity by 2030. Latorre highlighted private investments that were attracted following prior work on connection nodes and infrastructure, mentioning parks by Genneia and YPF Luz, including El Quemado in Jocolí, as well as new photovoltaic projects in various stages.
"The point is that these investments develop when there are nodes for them to connect to," she stated. Therefore, the Province invests in transmission networks to provide greater security and robustness to the system, enable new generation, and support growth in industrial and mining demand.
Mining and Energy as Articulated Drivers
Latorre highlighted the relationship between mining growth and expansion of energy infrastructure. The development of copper projects will require electrical generation and transport that guarantee continuous and secure supply. She also linked mining potential to the global energy transition: electrification, storage, and incorporation of new generation sources demand critical minerals, particularly copper.
She reviewed exploration advances in Malargüe Western Mining District, highlighting the arrival of new companies and alliances between international investors and local enterprises. She also referred to PSJ Cobre Mendocino and the infrastructure needs of mining projects in the Andean region.