Business · Energy & Commodities · 8 hrs ago
Argentina’s private energy projects grow as public works stall
President Javier Milei is backing private investment to drive economic growth in Argentina.
His government offers companies tax and customs benefits for 30 years through a scheme called RIGI.
The incentives are helping major projects move forward, including a 600-kilometre pipeline carrying shale oil to the Atlantic coast and a terminal at Punta Colorada.
Five of the terminal’s six planned oil tanks are largely complete, and oil is expected to arrive there by the end of 2026.
Meanwhile, some publicly funded projects, including a partly built nuclear reactor and a highway interchange, have stopped.
Argentina’s economy is in a technical recession, though growth is expected for a second consecutive year and inflation has fallen sharply.
The scheme’s results are uncertain: an economist says oil and gas projects might proceed without it, and voters will decide next year whether Milei stays in office.
Argentina’s private energy projects are advancing while some publicly funded infrastructure and technology projects have stalled.
The Vaca Muerta Oil Sur pipeline and export terminal are a flagship example of investment encouraged by President Javier Milei’s policies.
The project’s companies, including Chevron and Shell, are investing around $3 billion.
An incentive program offers private investors tax and customs benefits for 30 years, but economist Juan Carlos Hallak questions whether it is needed for oil and gas projects.
- Who
- The Argentine government, private investors including Chevron and Shell, and economist Juan Carlos Hallak.
- What
- Private energy projects are progressing as some public works stall, amid debate over the need for investment incentives.
- When
- The article was published on November 5, 2026; oil is expected to reach the terminal by the end of 2026.
- Where
- Argentina, including the Vaca Muerta oil region and the terminal at Punta Colorada on the Atlantic coast.
- Why
- The government uses tax and customs incentives to attract private investment; Hallak says oil and gas projects may proceed without them.
Argentine government
Juan Carlos Hallak
Need for RIGI
Argentine government
The government offers incentives to attract private investors and speed up large projects.
Juan Carlos Hallak
Hallak doubts the program adds value for gas and oil projects, which are already being built and planned.
Cost of incentives
Argentine government
The program offers companies tax and customs benefits for 30 years.
Juan Carlos Hallak
Hallak says the incentives may accelerate investment somewhat, but at the cost of unnecessarily giving up state revenue.
The government included the Vaca Muerta Oil Sur project in RIGI as a strategic export project.
The project received an international loan of $2 billion.
Satellite images showed five of the six planned tanks at Punta Colorada largely completed.
Oil is expected to arrive at the terminal for the first time.
- Pipeline length
- About 600 kilometres
- Terminal tanks
- Six planned, each with a capacity of 120,000 cubic metres
- Project investment
- Around $3 billion
- International loan
- $2 billion
- RIGI benefits
- Tax and customs advantages for 30 years
1 source
What people are saying
The incentive may accelerate investments somewhat – but at the price of an unnecessarily high renunciation of state revenue.