Mega seeks RIGI approval for multi-million Vaca Muerta project

Petrochemical company Compañía Mega, backed by Argentine, Brazilian and U.S. capital, has applied for its multi-million-dollar project linked to Argentina’s Vaca Muerta unconventional formation to be included under the Large Investment Incentive Regime (RIGI).

According to the company, the $360 million project aims to expand production capacity and boost the development of liquids associated with oil and natural gas from Vaca Muerta.

“This initiative is part of the broader plan launched in 2023 and running through 2028, reaching a total estimated investment of $650 million,” Compañía Mega said in a statement.

The submitted project outlines a three-year construction plan (2026–2028) across four Argentine provinces.

The initiative includes the construction of two new pumping stations in General Roca (Río Negro province) and La Adela (La Pampa), which will increase the transport capacity of natural gas liquids through the pipeline connecting the Neuquén Basin with Bahía Blanca (Buenos Aires province).

It also includes developing new infrastructure to process natural gas and associated gas at the Loma La Lata separation plant in Neuquén.

In addition, complementary upgrades will be carried out at Mega’s fractionation plant in Bahía Blanca.

“This new plan reaffirms the strength of the company’s strategy, the long-term commitment of our three shareholders, and the importance of continuing to develop key infrastructure to transform Vaca Muerta’s potential into real growth for the country as a key global energy exporter,” said Mega CEO Tomás Córdoba.

Compañía Mega is owned by Argentina’s YPF (38%), Brazil’s Petrobras (34%), and U.S. petrochemical company Dow (28%).

If approved under RIGI, Mega would gain access to several tax benefits, including exemption from export duties, relief from the requirement to repatriate export revenues, and 30-year stability and access to international arbitration in case of disputes.

So far, Argentina has approved twelve projects under RIGI, with planned investments totaling around $26 billion.