A consortium of eight oil companies operating under VMOS S.A., led by state-controlled YPF, secured a syndicated loan of US$2 billion to finance construction of the Vaca Muerta Oleoducto Sur pipeline, the firms said on 8 July. Citi, Deutsche Bank, Itaú, JP Morgan and Santander arranged the facility, which carries a five-year tenor at SOFR plus 5.5% and involves a total of 14 international lenders.

Read more

A technical delegation from Argentina is in Washington this week to advance the first review of the country's $20 billion loan program with the International Monetary Fund (IMF). The IMF has acknowledged that the program is delivering positive results, highlighting a smooth transition to a more robust foreign exchange regime and a resumed disinflation process. However, the IMF has not yet approved the first review, citing that Argentina has not met foreign reserve targets. Discussions between Argentine authorities and the IMF remain productive, with ongoing engagement on related issues such as the U.S.

court ruling on YPF. Meanwhile, Argentina's official dollar exchange rate has increased recently, approaching 1,300 pesos at Banco Nación, amid a growing current account deficit and heightened market demand for government reserve accumulation. Treasury deposits in dollars rose by an additional $200 million, raising questions about the return of bulk purchases previously associated with former official Luis Caputo. The expiration of delegated powers granted to former Central Bank President Federico Sturzenegger has complicated efforts to maintain the dollar within the lower band of the exchange rate range. Despite these challenges, the Institute of International Finance (IIF) praised Argentina's bold economic stabilization efforts, fiscal discipline, and inflation control, while calling for further reforms. Fiscal targets under the IMF agreement continue to be met as Argentina navigates an election year.

Argentine equities experienced notable volatility in late June and early July 2025 amid fluctuating global market conditions and anticipation of MSCI index decisions. The S&P Merval index saw sharp declines of up to 5.3% before the MSCI decision, followed by rebounds exceeding 8% and a six-week high, supported by improved international sentiment. However, volatility persisted with the index falling nearly 2% and then recovering 2% driven by banking stocks. Argentine bonds showed mixed performance, with dollar-denominated bonds (Bonares) declining while Global bonds rose intermittently.

In early July, Argentine ADRs listed on Wall Street initially dropped as much as 6%, influenced by a U.S. court ruling on YPF and broader Wall Street declines. Subsequently, the ADRs rebounded, rising up to 11% ahead of bond interest payments, coinciding with a 4% drop in the dollar. On the corporate front, EuroAmerica became the controlling shareholder of Clínica Las Condes following a capital increase. Additionally, Moller & Pérez Cotapos proposed an $8 million capital raise to advance development projects. Fixed income markets in Chile saw continued rallies in peso-denominated bonds amid a sharp drop in the latest consumer price index. Commercial loan placements were led by Bci, with Santander dominating consumer and housing loans. Philips announced plans to triple its Chilean business by 2027, focusing on airfryers and coffee machines. Meanwhile, state programs with implementation issues accounted for over $5.8 billion in investments, and Frontal Trust expanded its real estate projects in Peru with up to five residential developments planned for 2025.

Argentina declared a pre-emergency energy status and imposed restrictions on natural gas supply to industries and compressed natural gas (CNG) stations to prioritize residential heating amid a historic polar cold wave affecting much of the country. The surge in home gas consumption reached record levels, causing the system to operate at its limits and leading to gas service interruptions in Buenos Aires and other areas. Industrial gas supply cuts also impacted production, including a decline in output from the Vaca Muerta gas field. Additionally, gas exports to Chile were restricted due to the crisis. Following the extreme cold snap, which caused widespread demand spikes and supply disruptions, the Argentine government announced on July 4 that it would begin lifting the gas restrictions as the situation started to normalize. The Energy Secretariat confirmed the end of the gas emergency, aiming to restore regular supply after the cold wave subsided.

Authorities in Mar del Plata said schools, shops, restaurants and sports facilities will operate normally on Friday after the city’s gas pressure returned to adequate levels late Thursday. The municipality of General Pueyrredón lifted a two-day suspension that had halted classes at all educational levels and limited commercial activity across the Atlantic coastal hub.

The restrictions were imposed when a polar cold snap drove temperatures below freezing and strained Argentina’s gas distribution network, prompting officials to divert supplies to homes, hospitals and schools. Service to GNC filling stations, industries and shopping centers was temporarily cut to preserve residential demand.

Mayor Guillermo Montenegro convened the local crisis committee earlier in the day to confirm that supply had stabilized. With weather conditions expected to remain cold but manageable, the municipality said it does not anticipate further curbs, though it urged residents and businesses to use energy prudently.

Argentine President Javier Milei is pinning the success of his libertarian economic overhaul on a rapid expansion of oil production from the Vaca Muerta shale play in Patagonia. The formation holds light crude that is comparatively cheap to extract, and recent reductions in regulatory hurdles have begun to accelerate development.

Government officials and industry executives say a sustained output surge could deliver the foreign currency and fiscal revenues Milei needs to stabilise the economy, preserve political backing for deep spending cuts and lure further investment. The administration is aiming to show tangible results from the shale push before the 2027 elections, when Milei will seek a renewed mandate.

Shares of YPF, Argentina's state-controlled oil company, fell sharply on Wall Street following an adverse ruling in a U.S. court. The stock declined between 5% and 7% on June 30, 2025, as investors reacted to the judgment. This legal decision is part of the largest lawsuit Argentina has faced, with the amount at stake exceeding USD 17 billion.

The ruling has also impacted other Argentine assets, including a 1% drop in Argentine bonds. The case, known as the Preska ruling, has drawn significant market attention as it coincided with a period when investors were anticipating new investment decisions. The lawsuit involves potential payments to the Eskenazi family, who previously held a substantial stake in YPF. Market participants continue to assess the implications of the court's decision on YPF's stock performance and Argentina's financial outlook.

A federal judge in Manhattan ordered the Argentine government to transfer its 51% holding in oil and gas producer YPF SA to court-appointed custodians within 14 days, saying the shares should then be delivered to former minority investors Petersen Energia Inversora and Eton Park Capital Management. The turnover is meant to satisfy, in part, a US$16.1 billion judgment the investors won last year over Argentina’s 2012 nationalization of the company.

Read more

YPF, Argentina's leading energy company, implemented a 5% discount on gasoline and diesel prices during nighttime hours from midnight to 6 a.m. at service stations equipped with self-service pumps. This initiative expanded the price gap with competitors by approximately 10.7% for premium gasoline and 8.2% for regular gasoline. However, on June 30, 2025, YPF increased fuel prices by 3.5%, with the average national price for regular gasoline rising slightly from 23.39 to 23.42 pesos per liter.

Despite the price hike, YPF continues to offer nighttime discounts through its self-service system. Meanwhile, in Mexico, the consumer protection agency Profeco reported that 94.3% of gas stations nationwide sell regular gasoline below 24 pesos per liter as part of a price stabilization strategy, a notable increase from 25.2% in February. Prices in Mexico range from 23.12 to 24.99 pesos per liter.

Argentina's economy demonstrated robust growth in the first quarter of 2025, with the Gross Domestic Product (GDP) expanding by 5.8% year-on-year and 0.8% quarter-on-quarter, according to the National Institute of Statistics and Census (INDEC). This growth rate surpasses that of China, which recorded a 5.4% increase in the same period. Private consumption reached its highest historical level with an 11.6% annual increase, while private investment surged 31.8% compared to the previous quarter, driven mainly by machinery, equipment, and transportation investments. Government consumption, however, declined by 0.8%.

Inflation has dropped significantly, with monthly inflation falling to 1.5% in May, the lowest in over five years, contributing to an annual inflation rate of 43.5%, down from 211% before. Wage growth outpaced inflation, with salaries rising 74.3% year-on-year in April against a 47.3% inflation rate, resulting in a real wage increase of 18.3%. Poverty rates have also declined markedly under President Javier Milei's administration, from 54.8% in early 2024 to 31.7% in the first quarter of 2025, with indigence rates falling from 20.2% to 7.3%. The poverty rate in Buenos Aires specifically dropped to 19.9%, the lowest since early 2022. Economic activity continued its upward trajectory in April 2025, growing 7.7% year-on-year and 1.9% month-on-month, with finance and construction sectors experiencing substantial gains. The government projects Argentina to be the fastest-growing economy in Latin America in 2025 and 2026, with growth rates of 5.5% and 4%, respectively, according to BBVA. President Milei is also banking on a shale-oil boom from the Vaca Muerta basin to sustain and solidify his libertarian economic reforms ahead of the 2027 elections. The economic team forecasts a stable dollar and an inflation rate of 22.7% by the end of the year.

Argentine President Javier Milei vetoed Law 27.790, which had been passed by Congress to declare a state of emergency and catastrophe in the province of Buenos Aires, specifically for the municipalities of Bahía Blanca and Coronel Rosales affected by the March 7, 2025 flooding. The vetoed legislation included the creation of an emergency fund intended to assist the flood-impacted areas. The government justified the veto by stating that the fund was unnecessary as there already exists a government fund to aid those affected. Following the veto, the mayor of Bahía Blanca expressed his intention to seek direct communication with President Milei to request the previously approved funds for reconstruction.

Opposition forces are preparing to push for the emergency declaration again in Congress. Meanwhile, the Milei administration announced the completion of the Riachuelo sanitation system, a major infrastructure project expected to improve sewage services for approximately 4.5 million residents in the Buenos Aires metropolitan area. Additionally, new sewer works are set to begin in several municipalities including Almirante Brown, Avellaneda, Lanús, Lomas de Zamora, Presidente Perón, and Quilmes. The government also initiated a mandatory revalidation process for subsidies to local community clubs after discovering misuse by elite professional clubs.

Argentina's state-owned energy company YPF has signed a strategic agreement with Italian energy firm Eni to export liquefied natural gas (LNG) from the Vaca Muerta field. The deal, signed in Rome, was overseen by Argentine President Javier Milei and Italian Prime Minister Giorgia Meloni. The agreement aims to transform Argentina into the world's fifth-largest LNG exporter, with plans to export gas to Europe and other global markets. The project is expected to generate USD 100.000 millones over 20 years.

The project, known as Argentina LNG, involves the production, treatment, transportation, and liquefaction of gas using floating units in Río Negro, with a projected capacity of 12 million tons annually. YPF will have a 25% participation in the agreement, which is expected to export 6 million tons of LNG per year, valued at u$s 6000 millones. This initiative is part of a broader plan to monetize Argentina's unconventional gas resources from the Vaca Muerta formation in Neuquén province, with the goal of reaching up to 30 million tons of LNG exports per year by 2030. The agreement was signed by YPF President Horacio Marín and Eni CEO Claudio Descalzi.

President Milei's visit to Italy marks the beginning of a ten-day international tour that includes stops in Spain, France, and Israel. The agreement with Eni is seen as a significant step in strengthening Argentina's position in the global energy market and enhancing its economic ties with Europe.

Mexican billionaire Carlos Slim has taken a central role in supporting Pemex, Mexico's state-owned oil company, through investments exceeding $2 billion. Despite Pemex's substantial debt of $100 billion, Slim has become its most important private partner, focusing on energy and gas projects in the Gulf of Mexico. Investors are optimistic that Claudia Sheinbaum, Mexico's political leader, can stabilize Pemex's finances where others have failed, as evidenced by increased purchases of the company's bonds. Pemex is also undertaking a reorganization plan aimed at saving nearly 5 billion pesos (approximately $250 million) between 2025 and 2026. While Slim's investments strengthen his position as a key partner, they will not eliminate Pemex's debt. The company's current market performance reflects cautious investor confidence amid ongoing financial challenges.

The government of Paraguay is advancing plans to construct a regional gas pipeline connecting Paraguay with Argentina and Brazil. The project aims to establish a daily transportation capacity of 10 million cubic meters of natural gas initially. Paraguayan officials intend to sign memorandums of understanding and set up a working group within the year to facilitate the project's development. This initiative is seen as an opportunity to leverage Argentina's Vaca Muerta gas reserves and position Paraguay as a gateway to the Mercosur trade bloc. Paraguay has also presented itself to Indian companies as a potential entry point into Mercosur, highlighting the strategic importance of the gas pipeline project for regional energy integration and trade.

Argentina is advancing its economic strategy by focusing on the extraction sector, with new government incentives supporting mining and energy projects despite environmental and social concerns. The president of YPF, Horacio Marín, announced the establishment of an industrial hub for uranium extraction in the Chubut province. Additionally, the government approved a lithium mining project in Salta with an investment of $2.744 billion, signaling an acceleration in project approvals. These moves reflect Argentina's broader efforts to boost its economy through resource development and reforms.

YPF, Argentina's state-controlled energy company, announced it will implement a new variable pricing system for gasoline and diesel starting June 23, 2025. The pricing will be segmented by time of day, with lower prices offered during early morning hours. This initiative incorporates self-service options and artificial intelligence to optimize costs based on demand and time slots. The move aims to provide cheaper fuel during off-peak hours. Concurrently, starting in June 2025, Argentina has also introduced increases in electricity and natural gas tariffs across the Buenos Aires metropolitan area and other provinces, as part of the government led by President Javier Milei's broader economic adjustment policies. Horacio Marín provided explanations on how the new early morning fuel pricing will operate.

YPF has completed the first automatic welding of the Oleoducto Sur pipeline in Río Negro, marking a key step toward enabling large-scale oil exports from the Vaca Muerta shale formation. This development is part of a broader reconfiguration of Vaca Muerta, characterized by fewer operators, increased production, and a jump in export capacity. In addition, Oiltanking Ebytem inaugurated the first phase of an expansion at its terminal in Puerto Rosales, Bahía Blanca, which includes the construction of six new facilities aimed at boosting exports from Vaca Muerta. YPF also finalized its largest investment in 50 years at the Plaza Huincul refinery, which will increase its capacity to process crude oil from Vaca Muerta, one of the world's major unconventional hydrocarbon reserves. These advances were highlighted during the Energy and Production meeting in Río Negro, where Horacio Marín and other stakeholders discussed the regional potential related to Vaca Muerta, the VMOS project, and liquefied natural gas (GNL).

The National Court of Spain has sentenced retired police commissioner José Manuel Villarejo to eight years in prison for four counts of unauthorized disclosure of private information related to the 'Project Wine'. This ruling pertains to services he provided to Repsol and CaixaBank, aimed at thwarting a takeover attempt of Repsol by Sacyr Vallehermoso and Pemex in 2011, led by Luis del Rivero.

Villarejo's associate, Rafael Redondo, received a six-year sentence for the same offenses. Both were acquitted of charges of passive bribery and document falsification. The court also ordered the confiscation of the 389,400 euros that Villarejo and his company, Cenyt, earned from these engagements.

Read more

Argentine energy company YPF has entered into a partnership with Israeli firm XtraLit to implement new technology for lithium extraction in Argentina, aiming to boost the country's lithium production, which is projected to grow by 77% in 2025. YPF reported a 31% increase in production and revenues of $1.245 billion in the first quarter of 2025, despite swinging to a net loss of $10 million compared to a net profit of $657 million in the same period last year. The company's export of petroleum increased by 34% year-over-year in Q1. Additionally, Pampa Energía, another Argentine energy firm, has begun exporting gas to Chile, which is expected to provide the industry with more competitive pricing.

Pluspetrol announced plans to invest $1 billion in expanding its operations in the Vaca Muerta shale formation, aiming to triple oil output in the Bajo del Choique block and increase gas and condensate production in the La Calera block following its acquisition of ExxonMobil assets. Moody's has highlighted Vaca Muerta as a key factor for Argentina's economic stabilization. Furthermore, Argentina's oil production had its best first quarter in 15 years, driven by Vaca Muerta. Separately, Algerian crude oil exports by sea rose to 492,000 barrels per day in the latest month, up from 481,000 barrels per day in the same month of 2024.

Argentina's state energy company YPF has entered into a partnership with Israeli technology firm XtraLit to advance lithium extraction in Argentina. The collaboration aims to implement new technology for lithium extraction, marking a notable investment by Israeli companies in Argentina's lithium sector. This agreement was highlighted by Argentina's ambassador to Israel, Axel Wahnish, and was initiated during YPF CEO Horacio Marín's visit to Israel. Meanwhile, in related lithium industry developments, Chinese companies BYD and Tsingshan have announced their withdrawal from lithium processing plant projects in northern Chile. Additionally, Guinea has begun proceedings to revoke the mining license of Emirates Global Aluminium (EGA).

A consortium of eight oil companies operating under VMOS S.A., led by state-controlled YPF, secured a syndicated loan of US$2 billion to finance construction of the Vaca Muerta Oleoducto Sur pipeline, the firms said on 8 July. Citi, Deutsche Bank, Itaú, JP Morgan and Santander arranged the facility, which carries a five-year tenor at SOFR plus 5.5% and involves a total of 14 international lenders.

Read more

A technical delegation from Argentina is in Washington this week to advance the first review of the country's $20 billion loan program with the International Monetary Fund (IMF). The IMF has acknowledged that the program is delivering positive results, highlighting a smooth transition to a more robust foreign exchange regime and a resumed disinflation process. However, the IMF has not yet approved the first review, citing that Argentina has not met foreign reserve targets. Discussions between Argentine authorities and the IMF remain productive, with ongoing engagement on related issues such as the U.S.

court ruling on YPF. Meanwhile, Argentina's official dollar exchange rate has increased recently, approaching 1,300 pesos at Banco Nación, amid a growing current account deficit and heightened market demand for government reserve accumulation. Treasury deposits in dollars rose by an additional $200 million, raising questions about the return of bulk purchases previously associated with former official Luis Caputo. The expiration of delegated powers granted to former Central Bank President Federico Sturzenegger has complicated efforts to maintain the dollar within the lower band of the exchange rate range. Despite these challenges, the Institute of International Finance (IIF) praised Argentina's bold economic stabilization efforts, fiscal discipline, and inflation control, while calling for further reforms. Fiscal targets under the IMF agreement continue to be met as Argentina navigates an election year.

Argentine equities experienced notable volatility in late June and early July 2025 amid fluctuating global market conditions and anticipation of MSCI index decisions. The S&P Merval index saw sharp declines of up to 5.3% before the MSCI decision, followed by rebounds exceeding 8% and a six-week high, supported by improved international sentiment. However, volatility persisted with the index falling nearly 2% and then recovering 2% driven by banking stocks. Argentine bonds showed mixed performance, with dollar-denominated bonds (Bonares) declining while Global bonds rose intermittently.

In early July, Argentine ADRs listed on Wall Street initially dropped as much as 6%, influenced by a U.S. court ruling on YPF and broader Wall Street declines. Subsequently, the ADRs rebounded, rising up to 11% ahead of bond interest payments, coinciding with a 4% drop in the dollar. On the corporate front, EuroAmerica became the controlling shareholder of Clínica Las Condes following a capital increase. Additionally, Moller & Pérez Cotapos proposed an $8 million capital raise to advance development projects. Fixed income markets in Chile saw continued rallies in peso-denominated bonds amid a sharp drop in the latest consumer price index. Commercial loan placements were led by Bci, with Santander dominating consumer and housing loans. Philips announced plans to triple its Chilean business by 2027, focusing on airfryers and coffee machines. Meanwhile, state programs with implementation issues accounted for over $5.8 billion in investments, and Frontal Trust expanded its real estate projects in Peru with up to five residential developments planned for 2025.

Argentina declared a pre-emergency energy status and imposed restrictions on natural gas supply to industries and compressed natural gas (CNG) stations to prioritize residential heating amid a historic polar cold wave affecting much of the country. The surge in home gas consumption reached record levels, causing the system to operate at its limits and leading to gas service interruptions in Buenos Aires and other areas. Industrial gas supply cuts also impacted production, including a decline in output from the Vaca Muerta gas field. Additionally, gas exports to Chile were restricted due to the crisis. Following the extreme cold snap, which caused widespread demand spikes and supply disruptions, the Argentine government announced on July 4 that it would begin lifting the gas restrictions as the situation started to normalize. The Energy Secretariat confirmed the end of the gas emergency, aiming to restore regular supply after the cold wave subsided.

Authorities in Mar del Plata said schools, shops, restaurants and sports facilities will operate normally on Friday after the city’s gas pressure returned to adequate levels late Thursday. The municipality of General Pueyrredón lifted a two-day suspension that had halted classes at all educational levels and limited commercial activity across the Atlantic coastal hub.

The restrictions were imposed when a polar cold snap drove temperatures below freezing and strained Argentina’s gas distribution network, prompting officials to divert supplies to homes, hospitals and schools. Service to GNC filling stations, industries and shopping centers was temporarily cut to preserve residential demand.

Mayor Guillermo Montenegro convened the local crisis committee earlier in the day to confirm that supply had stabilized. With weather conditions expected to remain cold but manageable, the municipality said it does not anticipate further curbs, though it urged residents and businesses to use energy prudently.

Argentine President Javier Milei is pinning the success of his libertarian economic overhaul on a rapid expansion of oil production from the Vaca Muerta shale play in Patagonia. The formation holds light crude that is comparatively cheap to extract, and recent reductions in regulatory hurdles have begun to accelerate development.

Government officials and industry executives say a sustained output surge could deliver the foreign currency and fiscal revenues Milei needs to stabilise the economy, preserve political backing for deep spending cuts and lure further investment. The administration is aiming to show tangible results from the shale push before the 2027 elections, when Milei will seek a renewed mandate.

Shares of YPF, Argentina's state-controlled oil company, fell sharply on Wall Street following an adverse ruling in a U.S. court. The stock declined between 5% and 7% on June 30, 2025, as investors reacted to the judgment. This legal decision is part of the largest lawsuit Argentina has faced, with the amount at stake exceeding USD 17 billion.

The ruling has also impacted other Argentine assets, including a 1% drop in Argentine bonds. The case, known as the Preska ruling, has drawn significant market attention as it coincided with a period when investors were anticipating new investment decisions. The lawsuit involves potential payments to the Eskenazi family, who previously held a substantial stake in YPF. Market participants continue to assess the implications of the court's decision on YPF's stock performance and Argentina's financial outlook.

A federal judge in Manhattan ordered the Argentine government to transfer its 51% holding in oil and gas producer YPF SA to court-appointed custodians within 14 days, saying the shares should then be delivered to former minority investors Petersen Energia Inversora and Eton Park Capital Management. The turnover is meant to satisfy, in part, a US$16.1 billion judgment the investors won last year over Argentina’s 2012 nationalization of the company.

Read more

YPF, Argentina's leading energy company, implemented a 5% discount on gasoline and diesel prices during nighttime hours from midnight to 6 a.m. at service stations equipped with self-service pumps. This initiative expanded the price gap with competitors by approximately 10.7% for premium gasoline and 8.2% for regular gasoline. However, on June 30, 2025, YPF increased fuel prices by 3.5%, with the average national price for regular gasoline rising slightly from 23.39 to 23.42 pesos per liter.

Despite the price hike, YPF continues to offer nighttime discounts through its self-service system. Meanwhile, in Mexico, the consumer protection agency Profeco reported that 94.3% of gas stations nationwide sell regular gasoline below 24 pesos per liter as part of a price stabilization strategy, a notable increase from 25.2% in February. Prices in Mexico range from 23.12 to 24.99 pesos per liter.

Argentina's economy demonstrated robust growth in the first quarter of 2025, with the Gross Domestic Product (GDP) expanding by 5.8% year-on-year and 0.8% quarter-on-quarter, according to the National Institute of Statistics and Census (INDEC). This growth rate surpasses that of China, which recorded a 5.4% increase in the same period. Private consumption reached its highest historical level with an 11.6% annual increase, while private investment surged 31.8% compared to the previous quarter, driven mainly by machinery, equipment, and transportation investments. Government consumption, however, declined by 0.8%.

Inflation has dropped significantly, with monthly inflation falling to 1.5% in May, the lowest in over five years, contributing to an annual inflation rate of 43.5%, down from 211% before. Wage growth outpaced inflation, with salaries rising 74.3% year-on-year in April against a 47.3% inflation rate, resulting in a real wage increase of 18.3%. Poverty rates have also declined markedly under President Javier Milei's administration, from 54.8% in early 2024 to 31.7% in the first quarter of 2025, with indigence rates falling from 20.2% to 7.3%. The poverty rate in Buenos Aires specifically dropped to 19.9%, the lowest since early 2022. Economic activity continued its upward trajectory in April 2025, growing 7.7% year-on-year and 1.9% month-on-month, with finance and construction sectors experiencing substantial gains. The government projects Argentina to be the fastest-growing economy in Latin America in 2025 and 2026, with growth rates of 5.5% and 4%, respectively, according to BBVA. President Milei is also banking on a shale-oil boom from the Vaca Muerta basin to sustain and solidify his libertarian economic reforms ahead of the 2027 elections. The economic team forecasts a stable dollar and an inflation rate of 22.7% by the end of the year.

Argentine President Javier Milei vetoed Law 27.790, which had been passed by Congress to declare a state of emergency and catastrophe in the province of Buenos Aires, specifically for the municipalities of Bahía Blanca and Coronel Rosales affected by the March 7, 2025 flooding. The vetoed legislation included the creation of an emergency fund intended to assist the flood-impacted areas. The government justified the veto by stating that the fund was unnecessary as there already exists a government fund to aid those affected. Following the veto, the mayor of Bahía Blanca expressed his intention to seek direct communication with President Milei to request the previously approved funds for reconstruction.

Opposition forces are preparing to push for the emergency declaration again in Congress. Meanwhile, the Milei administration announced the completion of the Riachuelo sanitation system, a major infrastructure project expected to improve sewage services for approximately 4.5 million residents in the Buenos Aires metropolitan area. Additionally, new sewer works are set to begin in several municipalities including Almirante Brown, Avellaneda, Lanús, Lomas de Zamora, Presidente Perón, and Quilmes. The government also initiated a mandatory revalidation process for subsidies to local community clubs after discovering misuse by elite professional clubs.

Argentina's state-owned energy company YPF has signed a strategic agreement with Italian energy firm Eni to export liquefied natural gas (LNG) from the Vaca Muerta field. The deal, signed in Rome, was overseen by Argentine President Javier Milei and Italian Prime Minister Giorgia Meloni. The agreement aims to transform Argentina into the world's fifth-largest LNG exporter, with plans to export gas to Europe and other global markets. The project is expected to generate USD 100.000 millones over 20 years.

The project, known as Argentina LNG, involves the production, treatment, transportation, and liquefaction of gas using floating units in Río Negro, with a projected capacity of 12 million tons annually. YPF will have a 25% participation in the agreement, which is expected to export 6 million tons of LNG per year, valued at u$s 6000 millones. This initiative is part of a broader plan to monetize Argentina's unconventional gas resources from the Vaca Muerta formation in Neuquén province, with the goal of reaching up to 30 million tons of LNG exports per year by 2030. The agreement was signed by YPF President Horacio Marín and Eni CEO Claudio Descalzi.

President Milei's visit to Italy marks the beginning of a ten-day international tour that includes stops in Spain, France, and Israel. The agreement with Eni is seen as a significant step in strengthening Argentina's position in the global energy market and enhancing its economic ties with Europe.

Mexican billionaire Carlos Slim has taken a central role in supporting Pemex, Mexico's state-owned oil company, through investments exceeding $2 billion. Despite Pemex's substantial debt of $100 billion, Slim has become its most important private partner, focusing on energy and gas projects in the Gulf of Mexico. Investors are optimistic that Claudia Sheinbaum, Mexico's political leader, can stabilize Pemex's finances where others have failed, as evidenced by increased purchases of the company's bonds. Pemex is also undertaking a reorganization plan aimed at saving nearly 5 billion pesos (approximately $250 million) between 2025 and 2026. While Slim's investments strengthen his position as a key partner, they will not eliminate Pemex's debt. The company's current market performance reflects cautious investor confidence amid ongoing financial challenges.

The government of Paraguay is advancing plans to construct a regional gas pipeline connecting Paraguay with Argentina and Brazil. The project aims to establish a daily transportation capacity of 10 million cubic meters of natural gas initially. Paraguayan officials intend to sign memorandums of understanding and set up a working group within the year to facilitate the project's development. This initiative is seen as an opportunity to leverage Argentina's Vaca Muerta gas reserves and position Paraguay as a gateway to the Mercosur trade bloc. Paraguay has also presented itself to Indian companies as a potential entry point into Mercosur, highlighting the strategic importance of the gas pipeline project for regional energy integration and trade.

Argentina is advancing its economic strategy by focusing on the extraction sector, with new government incentives supporting mining and energy projects despite environmental and social concerns. The president of YPF, Horacio Marín, announced the establishment of an industrial hub for uranium extraction in the Chubut province. Additionally, the government approved a lithium mining project in Salta with an investment of $2.744 billion, signaling an acceleration in project approvals. These moves reflect Argentina's broader efforts to boost its economy through resource development and reforms.

YPF, Argentina's state-controlled energy company, announced it will implement a new variable pricing system for gasoline and diesel starting June 23, 2025. The pricing will be segmented by time of day, with lower prices offered during early morning hours. This initiative incorporates self-service options and artificial intelligence to optimize costs based on demand and time slots. The move aims to provide cheaper fuel during off-peak hours. Concurrently, starting in June 2025, Argentina has also introduced increases in electricity and natural gas tariffs across the Buenos Aires metropolitan area and other provinces, as part of the government led by President Javier Milei's broader economic adjustment policies. Horacio Marín provided explanations on how the new early morning fuel pricing will operate.

YPF has completed the first automatic welding of the Oleoducto Sur pipeline in Río Negro, marking a key step toward enabling large-scale oil exports from the Vaca Muerta shale formation. This development is part of a broader reconfiguration of Vaca Muerta, characterized by fewer operators, increased production, and a jump in export capacity. In addition, Oiltanking Ebytem inaugurated the first phase of an expansion at its terminal in Puerto Rosales, Bahía Blanca, which includes the construction of six new facilities aimed at boosting exports from Vaca Muerta. YPF also finalized its largest investment in 50 years at the Plaza Huincul refinery, which will increase its capacity to process crude oil from Vaca Muerta, one of the world's major unconventional hydrocarbon reserves. These advances were highlighted during the Energy and Production meeting in Río Negro, where Horacio Marín and other stakeholders discussed the regional potential related to Vaca Muerta, the VMOS project, and liquefied natural gas (GNL).

The National Court of Spain has sentenced retired police commissioner José Manuel Villarejo to eight years in prison for four counts of unauthorized disclosure of private information related to the 'Project Wine'. This ruling pertains to services he provided to Repsol and CaixaBank, aimed at thwarting a takeover attempt of Repsol by Sacyr Vallehermoso and Pemex in 2011, led by Luis del Rivero.

Villarejo's associate, Rafael Redondo, received a six-year sentence for the same offenses. Both were acquitted of charges of passive bribery and document falsification. The court also ordered the confiscation of the 389,400 euros that Villarejo and his company, Cenyt, earned from these engagements.

Read more

Argentine energy company YPF has entered into a partnership with Israeli firm XtraLit to implement new technology for lithium extraction in Argentina, aiming to boost the country's lithium production, which is projected to grow by 77% in 2025. YPF reported a 31% increase in production and revenues of $1.245 billion in the first quarter of 2025, despite swinging to a net loss of $10 million compared to a net profit of $657 million in the same period last year. The company's export of petroleum increased by 34% year-over-year in Q1. Additionally, Pampa Energía, another Argentine energy firm, has begun exporting gas to Chile, which is expected to provide the industry with more competitive pricing.

Pluspetrol announced plans to invest $1 billion in expanding its operations in the Vaca Muerta shale formation, aiming to triple oil output in the Bajo del Choique block and increase gas and condensate production in the La Calera block following its acquisition of ExxonMobil assets. Moody's has highlighted Vaca Muerta as a key factor for Argentina's economic stabilization. Furthermore, Argentina's oil production had its best first quarter in 15 years, driven by Vaca Muerta. Separately, Algerian crude oil exports by sea rose to 492,000 barrels per day in the latest month, up from 481,000 barrels per day in the same month of 2024.

Argentina's state energy company YPF has entered into a partnership with Israeli technology firm XtraLit to advance lithium extraction in Argentina. The collaboration aims to implement new technology for lithium extraction, marking a notable investment by Israeli companies in Argentina's lithium sector. This agreement was highlighted by Argentina's ambassador to Israel, Axel Wahnish, and was initiated during YPF CEO Horacio Marín's visit to Israel. Meanwhile, in related lithium industry developments, Chinese companies BYD and Tsingshan have announced their withdrawal from lithium processing plant projects in northern Chile. Additionally, Guinea has begun proceedings to revoke the mining license of Emirates Global Aluminium (EGA).