Economist Cristian Folgar recently discussed a report from Cammesa, which warns about potential electricity outages during the summer. He emphasized the need to enhance infrastructure and maintain good relations with neighboring countries, Brazil and Uruguay, which are critical for energy interconnection. Folgar also dismissed rumors claiming that the Minister of Economy intends to replace the Secretary of Energy, stating that Eduardo Rodríguez Chirillo is a highly competent professional who is doing an excellent job in the public sector. He noted that the current government has not been very meticulous in managing human resources.
Cristian Folgar is a consultant and economist with significant experience in the energy and public utilities sector. He previously served as the Deputy Secretary of Fuels for the nation from 2003 to 2007.
The President criticized Axel Kicillof for his refusal to join RIGI and announced that investment in the LNG plant will occur in Río Negro rather than Buenos Aires. It raised eyebrows when Javier Milei stated it was “obvious” that the plant would be placed in Río Negro because Petronas would not want to join Kicillof’s “communist regime.”
Professional and critical journalism is a cornerstone of democracy, often irking those who believe they possess the absolute truth.
Folgar expressed surprise at the President’s firm decision regarding the LNG projects, noting that YPF has two potential deals: one with Petronas and another resulting from a partnership between PAE and Golar from Norway. Since the President represents the major shareholder at YPF, his affirmation implies a clear direction for the project’s development in Río Negro.
YPF had been holding discussions with both provinces. It seems a decision has been made not to pursue the project in Bahía Blanca, despite prior discussions indicating that地域’s qualifications for LNG operations were sound. Folgar reflected on the President’s abrupt conclusion of negotiations, signifying a definite choice by the major shareholder at YPF.
Kicillof responded to the President by refraining from committing to Milei’s RIGI and labeled the situation with terms like “industricidio” and “argentinicidio.”
The way the President presented his decision might not have surprised observers as much as the clarity with which he expressed it, indicating a lack of favoritism toward the governor of Buenos Aires. There seems to be little sense in YPF negotiating with a province if the major shareholder has already made a decision favoring another location.
Elizabeth Peger pointed out discussions within the oil sector concerning Kicillof’s proposed Provincial Incentive Regime that aims to level the playing field. This situation seems more politically driven than economically advantageous.
Economic viability suggests that Bahía Blanca, with its existing experience in LNG operations, would be a pragmatic choice. Peger highlighted that while the Buenos Aires province’s incentive regime was technically sound, the decision appears to be influenced more by political motives than by operational feasibility.
She noted a concern for ensuring profitability, as Petronas, being a private company, seeks returns on its investments. The perceived financial advantages of the Buenos Aires option contrasted with the project in Río Negro.
Folgar speculated if the ministry’s interest in dismissing Rodríguez Chirillo could be due to underlying political friction. He shared his positive experiences working with Chirillo, emphasizing that his technical abilities and efforts are invaluable, especially during these uncertain times.
In response to inquiries regarding Cammesa’s warning about potential power outages next summer, Folgar clarified that the report describes risks rather than certainties. The adequacy of electricity generation will depend on various factors, including weather conditions and energy imports from Brazil and Uruguay.
With summer approaching, achieving any new generation capacity on such short notice is unrealistic. Folgar stressed the need for Argentina to bolster its energy production capacity in the long term. According to him, Cammesa’s report suggests that while outages are possible under certain climatic conditions, it does not definitively predict outages.
He remarked that current scenarios depend heavily on maintaining favorable weather and relations with Brazil to secure energy imports.
Source: https://www.perfil.com/noticias/modo-fontevecchia/ex-secretario-de-energia-que-milei-diga-que-el-gnl-ira-a-rio-negro-deja-a-kicillof-sin-chances-modof.phtml
