US, Argentina agree to energy infrastructure agreement at G20

U.S. and Argentinian officials signed an agreement Friday to work together to strengthen the energy infrastructure in both countries.

The agreement, called the Framework to Strengthen Infrastructure Investment and Energy Cooperation, was signed at the G20 Leaders’ Summit in Buenos Aires. It was signed by U.S. Secretary of the Treasury Steven Mnuchin and Treasury Minister of the Argentine Republic Nicolas Dujovne.

“Today’s Framework is part of a U.S. initiative called America Crece, or the Americas Grow – in this case by expanding opportunities in energy trade, investment and finance and spurring economic growth for both countries. This Framework should help catalyze private sector capital for investments across the energy value chain, including upstream energy production, as well as power generation, transmission, and distribution,” Mnuchin said. “Energy is a key driver of economic development. This Framework provides a basis for energy growth, integration, and security. It is a great step forward for the United States and Argentina.”

Through this agreement, the two countries will integrate cleaner energy sources, including natural gas and renewable energy, and develop adequate natural gas storage capacity. They will also develop refined midstream and downstream infrastructure. Additionally, they will expand electricity generation from natural gas and convert existing fossil fuel power plants to operate using combined cycle natural gas technology. Further, the two nations will work together to accelerate Argentina’s adoption of innovative power technologies, including renewables and related micro, mini-grid and battery storage systems.

The United States and Argentina will also invest in high-voltage power transmission infrastructure and national and international interconnection and enhance energy efficiency, smart-grid technology usage, and “smart” buildings. Finally, the two countries agreed to develop deep and liquid markets for energy commodities and infrastructure-backed debt instruments. They will also support investments in infrastructure and development of the energy sector to achieve growth objectives of each country.