YPF state-owned energy firm and US General Electric (GE), the fourth largest firm in the world, signed a US$170-million investment deal yesterday for the construction of an electric generator plant in Tucumán province.
The new plant is expected to generate 260 megawatts and would begin running in 2018, providing energy to the National Interconnected Electrical Grid.
GE Vice-President Alejandro Bottan and GE’s CEO for the Southern Cone Álvaro Anzola put pen to paper to the accord with YPF President Miguel Gutiérrez at the energy company’s headquarters in Puerto Madero yesterday.
The agreement follows an auction for electricity plant projects launched by the national government last May in a move to increase the country’s capacity to generate electricity. The GE deal is the most important project that has been signed since the auction was announced.
The new plant will incorporate the latest GE engine turbine F9.04, which — the firm said — is equipped with “Dry Low Nox” technology. This allows a significant reduction of gas emissions into the environment, GE representatives said during the meeting.
“We will be able to produce reliable energy in the short term, taking advantage of opportunities to localize energy production, including thermal and renewable energies. This could directly and indirectly generate 10,000 new jobs in the next few years,” the GE vice-president claimed.
The president of YPF, for his part, highlighted that this new agreement would allow the Argentine company to incorporate new energy generation technologies, in addition to the development of oil and gas projects that it is already developing.
Gutiérrez believed that the project would lead to further collaborations with GE in the future. According to YPF, the amount of electricity that will be produced by the new plant will cover the needs of over 280,000 families. Last March, GE CEO Jeff Immelt had travelled to Buenos Aires to meet with Let’s Change President Mauricio Macri, where he promised the president that GE would help provide technology and investment to generate 1.5 gigawatts of energy.
YPF now is leading the largest of the 14 energy plant projects that have been licensed in the past few months. The energy company first entered the electrical energy generation plant business in 2013, when it formed the YPF Energía Eléctrica SA subsidiary, allowing it to incorporate Central Térmica Tucumán in the El Bracho district. This will now be expanded with its new partnership with GE
Date: June 22, 2016