Rio Negro and YPF Formalize Plan to Integrate Local Suppliers in Major Energy Projects

The Government of Rio Negro and YPF formalized the Rio Negro Supplier Development Plan during a meeting at the headquarters of the Department of Energy and Environment in Cipolletti.

The initiative stemmed from a survey of 490 local companies and seeks to prepare service providers from the province to participate in contracting opportunities derived from major energy investment projects, particularly Argentina LNG, the ambitious natural gas liquefaction venture that YPF will develop on Rio Negro's coast.

The event, held on October 15, brought together provincial authorities, municipal mayors from Alto Valle, YPF representatives, companies, and institutions. Attendees included Department of Energy and Environment Secretary Andrea Confini, YPF Public Affairs Manager Martín Guglianone, and YPF Supplier and Performance Director Patricio Martínez Morini. Following the presentation of technical and economic details of the project, both parties signed the agreement record formalizing their joint work.

The agreement presentation was held in Cipolletti.

Argentina LNG: port infrastructure and production capacity

YPF presented attendees with the Argentina LNG project, a venture that envisions connecting natural gas production from Vaca Muerta —the most prolific unconventional formation in Latin America— to industrial and maritime facilities located on Rio Negro's coast for export to global markets.

The base project contemplates a production capacity of 12 million tons annually of Liquefied Natural Gas (LNG), to be processed through two floating liquefaction units (FSRU). In Rio Negro, the project plans for the construction of transport pipelines, a fractionation plant, gas and hydrogen storage facilities, and an export port terminal. According to the schedule presented by the oil company during the event, the Final Investment Decision (FID) is scheduled for the fourth quarter of 2026, while the start of operations for the floating units is projected for 2030 and 2031.

The scale of the project positions it as one of the largest energy infrastructure ventures under development in South America and one of the pillars of Argentina's energy diversification strategy for the coming years.

The supplier agreement: preparing local companies for bidding

Andrea Confini explained during the meeting that the call allowed the gathering of the business sector, institutions, and organizations from Alto Valle to learn about Argentina LNG and prepare the community for the upcoming public hearing. Regarding the specific agreement with YPF, she emphasized that the plan aims for nearly 30 Rio Negro companies to advance in their categorization as suppliers and access larger and technically more complex bidding opportunities.

"That creates the possibility of greater spillover in the province"

The Supplier Development Plan includes a range of support tools differentiated according to each company's capabilities and needs. Among them are specialized technical training, direct meetings with demanding companies and main contractors, support with registration procedures in YPF's supplier registries, and financing access facilities for approved projects under conditions set by the oil company. As a precedent for this experience, YPF reported that currently 28 Rio Negro firms participate in its Supplier Development Program, demonstrating a track record of collaboration between the company and the local business ecosystem.

Economic impact of previous projects: 8.4 million hours of work

Mario Figueroa, responsible for Institutional Relations at the Department of Energy and Environment, presented a report on the economic performance of the VMOS (Vaca Muerta Oriente Sur) and Southern Energy projects, both already in advanced construction or operation stages. According to data presented to attendees, both ventures have accumulated approximately 8.4 million hours of Rio Negro employment since the start of their works and have generated around USD 246 million in wages for provincial workers.

Figueroa linked those macroeconomic indicators to the activity generated by the works in different municipalities across the province. "We have had peaks of more than 2,000 Rio Negro residents working simultaneously on the different projects," he said during a subsequent interview following the meeting. This data underscores the employment multiplier potential generated by major energy projects in a province with a smaller industrial and demographic base than other territories in the country.

The official also raised the provincial challenge as fundamental: "that information arrives on time, that it is accurate, that it is clear, that it generates opportunities." In that context, he emphasized the importance of implementing provincial laws 5804 and 5805, which regulate the participation of local workers and suppliers in investment projects, as well as the need to strengthen environmental and hydrocarbon inspection mechanisms to ensure compliance with international standards.

Public hearing on November 16 in Sierra Grande

The closing of the event was led by Mariela Maggi, who explained how the preparation of the public hearing scheduled for November 16 in Sierra Grande is progressing. The Province is in a stage of intensive community outreach and registration of interested participants to intervene in the public debate on Argentina LNG.

"To be a speaker at the public hearing, you must register through the form published on the Environment and Climate Change Department's website"

Maggi explained that prior inquiries can be directed during informational talks being held at different points throughout the province, directly to the Department, or through available online information channels. She specified that during the hearing day, questions submitted in writing will be compiled, read, and answered by specialists according to each specific subject matter, and all answers will be incorporated into the official record of the event.

Confini noted that registrations were already open at the time of the presentation and that outreach work continues in different regions of the province: "We have been doing this throughout the coast, in the Gulf, in Viedma, in the Middle Valley." Maggi highlighted the provincial responsibility to inform clearly so that citizens "get involved, participate, ask questions, and don't remain with doubts."

The public hearing represents a milestone in the environmental and social evaluation process for Argentina LNG, a mandatory stage under current regulations before investment decisions are made. Citizen participation and the collection of observations are key inputs for environmental impact studies and the evaluation of technical and regulatory feasibility of the project.