Business
Fracking transforms an Argentine town but what about the nation?
Matías Zibell GarcíaBusiness reporter, Añelo, Argentina
Matías Zibell GarcíaMechanic Fabio Javier Jiménez found himself in the right place at the right time.
When his father moved their family-owned tyre repair shop to the rural Argentine town of Añelo, it was a small, sleepy place, some 1,000km (600 miles) southwest of Buenos Aires.
There was no mains water or gas, and the electricity supply was constantly being cut off.
Then in 2014, fracking for oil and gas started in the surrounding region, and the conurbation boomed.
“We set up the tyre repair shop in the middle of the sand dunes, far from the town centre,” says Mr Jiménez. “Then the town grew and passed us by.”
Fuelled by its new-found energy wealth, Añelo’s population soared from 10,788 in 2010 to 17,893 in 2022, an increase of more than 60%.
In addition, Añelo sees some 15,000 workers enter the town each week day.
This has made the roads very busy, including lots of oil tankers going through.
Last year, 24,956 vehicles entered the town every day, of which 6,400 were lorries, official figures showed. Mr Jiménez’s workshop on the main provincial road is there to help any that need new tyres.
Añelo is located in the heart of Vaca Muerta, a 30,000 sq km (12,000 sq mi) oil and gas-rich geological formation. It was first discovered as far back as 1931, but it wasn’t until fracking became legal in Argentina in 2014 that the deposits could be commercially accessed.
Fracking is a method of mining that first became widespread in the US in the early 2000s, whereby a high-pressure mixture of water, sand and chemicals is injected into the ground. This cracks or fractures the rock, allowing the gas or oil trapped inside to be brought to the surface.
Matías Zibell GarcíaThe first fracking operation in Vaca Muerta was a joint operation between Argentina’s majority state-owned oil firm Yacimientos Petrolíferos Fiscales (YPF) and US giant Chevron.
By February of this year, there were 3,358 wells in active production in Vaca Muerta, according to the Argentine Institute of Oil and Gas. Of these, 1,632 are oil, and 1,726 are gas.
This accounts “for more than half of Argentina’s oil and gas production”, says Nicolás Gadano, chief economist at the Empiria consultancy and a former YPF official.
He adds that the cost of the fracked oil is cheaper than conventional extraction elsewhere in Argentina, because the latter now comprises very old deposits where the remaining oil is hard to get to.
Nicolás Gandini, director of Econojournal, a media outlet specialising in energy, agrees. “We have not been able to find new conventional deposits that are very cost-competitive, with the exception of conventional gas deposits in the offshore southern basin,” he says. “All other onshore deposits are three to four times more expensive than Vaca Muerta.”
The oil and gas from Vaca Muerta has given Argentina energy self-sufficiency, overturning decades of shortages and the need for expensive imports. It has also allowed Argentina to export oil and gas, helping it to earn foreign currency.
“Last year, there was a significant external surplus in the energy sector of $6bn [£4.6bn],” says Mr Gadano. “This year, we are aiming for a similar figure, with much higher volume but lower prices due to the drop in international prices.”
Mr Gandini adds that the fact Argentina is now exporting more energy than it imports “is very important” for the country, “especially when two or three years ago we were in the red”. Yet he adds that it won’t be “the panacea” that cures an Argentine economy that has long battled high inflation and public spending, and defaulting on its national debt.
“I think there is an overrepresentation of the value that Vaca Muerta can bring to solving the structural problems facing the Argentine economy,” he says.
“However, if one looks at what Argentina has today to generate more dollars, it does not have many sectors other than Vaca Muerta. It has agriculture, but agriculture also has its problems: the country has not been able to expand its agricultural production base. Beyond agriculture, mining lags far behind.”
Other commentators argue that oil and gas extraction from Vaca Muerta is being held back from reaching its full potential because Argentina’s bad credit rating is putting off international investors.
They also point to strict limits on how many pesos that firms can exchange into foreign currencies. This has long been the case to curb the flight of capital out of the country, and to protect the reserves of the Argentina central bank.
“Companies say ‘everything is fine with Vaca Muerta, but I haven’t been able to get a single dollar out of Argentina for 15 years, so we make money but we have to reinvest it there by force’,” explains Mr Gadano. “That’s not how the world works, that’s not how companies work, especially the big international players.”
The government of President Javier Milei lifted foreign exchange controls for individuals last April, and following his party’s victory in mid-term elections last month, it is expected that restrictions on companies may soon also be lifted.
Other critics say that Vaca Muerta is being hampered by insufficient pipelines, poor roads and the lack of a railway connection.
Gustavo Medele is energy minister of Neuquén Province, where the town of Añelo and much of Vaca Muerta is found. He says that the provincial government “is doing what it has to do and what it can do”.
What continues to help Vaca Muerta is that it has achieved a political consensus – all main parties support increased mining. “All the relevant political forces agree that this is an industry that needs to grow,” notes Mr Gadano.
This consensus has become a problem for those who, since the start of fracking at Vaca Muerta, have voiced their environmental concerns.
“We are really losing in the public debate,” says Fernando Cabrera, director of environmental pressure group Observatorio Petrolero Sur. “There is a very noticeable difference in the capacity for public and media influence; provincial legislatures are largely in favour of exploitation, as are the national chambers, so it is a very uneven dynamic.”
Back at Mr Jiménez’s garage, business is so good that he has opened a second branch. “When we came to Añelo, we were happy to service two vehicles a day. Then we serviced 10 vehicles, and now we have 20 vehicles a day.”
Yet he is sceptical that oil and gas exploitation will be the solution to all the country’s problems. “Yes there will surely be oil and gas for many years to come, but that does not mean that Argentina will not continue to experience economic and political ups and downs.”
Business
Green energy exports: $10-bn green ammonia project positions India as global clean-fuel supplier; Kakinada plant nears key milestone – The Times of India
A $10-billion green hydrogen and green ammonia project at Kakinada in Andhra Pradesh is set to cross a major construction milestone, reinforcing India’s ambition to emerge as a global supplier of clean energy to markets such as Germany, Japan and Singapore.The first major equipment erection ceremony of AM Green’s Green Hydrogen and Green Ammonia Complex will be held on January 17 and will be attended by Chief Minister N Chandrababu Naidu and Deputy Chief Minister Konidala Pawan Kalyan, state government officials said, PTI reported.Billed as one of the largest clean-energy investments in India to date, the project involves a total outlay of $10 billion and is expected to generate up to 8,000 jobs during the construction phase, besides substantial high-skill employment during operations and across allied sectors including renewable energy, logistics, storage and port services.AM Green is developing India’s first and the world’s largest green ammonia complex at Kakinada, with a planned capacity of 1.5 million tonnes per annum, through the brownfield conversion of an existing ammonia-urea facility. The project will be commissioned in phases, beginning with 0.5 million tonnes per annum by 2027, scaling up to 1 million tonnes by 2028 and reaching full capacity by 2030.Once operational, the facility will enable India’s first exports of green ammonia, which is increasingly being adopted globally as a clean shipping fuel, for power generation and as a carrier for green hydrogen.The integrated project spans 7.5 gigawatts of solar and wind capacity, 1,950 megawatts of electrolyser capacity and 2 gigawatts of round-the-clock renewable power, supported by pumped hydro storage, including India’s first such facility at Pinnapuram in Andhra Pradesh.AM Green has already signed long-term supply agreements with Germany-based utility Uniper and is in advanced discussions with potential buyers in Japan and Singapore, establishing India’s first green-energy export linkages with Europe and advanced Asian economies.The project is aligned with Andhra Pradesh’s Integrated Clean Energy Policy, 2024, which seeks to position the state as India’s primary hub for green hydrogen and green ammonia. Once fully commissioned, the facility is expected to mark a structural shift from energy import dependence towards clean-energy exports, placing Andhra Pradesh at the centre of the global green-energy value chain.AM Green, backed by the founders of the Greenko Group, is developing the project through AM Green Ammonia, a partnership involving Malaysia-based Gentari, Singapore’s sovereign wealth fund GIC and the Abu Dhabi Investment Authority. Construction at the Kakinada site is already under way, placing it among a limited set of large-scale green ammonia facilities globally that meet Renewable Fuels of Non-Biological Origin (RFNBO) standards.Beyond production, the project showcases an end-to-end clean-energy ecosystem within a single state, encompassing large-scale renewable generation, round-the-clock green power backed by storage, hydrogen and ammonia production, and port-based export infrastructure.AM Green has also moved to strengthen global linkages. In May last year, it announced a partnership with the Port of Rotterdam Authority to create a dedicated green-fuel corridor linking India with north-western Europe, aimed at enabling annual trade of up to 1 million tonnes of green fuels valued at nearly $1 billion. Earlier, it tied up with global logistics firm DP World to develop green fuel storage and export facilities in India and overseas.“This is not merely an industrial project, but a strategic step in positioning Andhra Pradesh and India as leaders in clean-energy exports and climate action,” the state government said.
Business
Budget 2026 Should Support MSMEs, Critical Minerals For Boosting Trade Resilience: Deloitte
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Deloitte India urges FY27 Budget to boost MSME support and critical mineral security, job protection and advancing India’s global manufacturing and clean energy goals.
Budget 2026 Expectations.
Budget 2026: Deloitte India has pitched a sharper focus on MSME support and critical mineral security in the FY27 Union Budget, arguing that these measures are essential to strengthen India’s trade resilience and reduce external vulnerabilities amid rising global uncertainty.
In its Budget expectations note, Deloitte India said micro, small and medium enterprises play a pivotal role in the economy, accounting for nearly 46% of India’s exports and emerging as the second-largest employer after agriculture. According to the firm, easing financial and compliance-related pressures on MSMEs would help them cope with global volatility, sustain production and remain competitive in overseas markets.
The Union Budget 2026-27 will be tabled on Sunday, February 1.
“Strengthening MSMEs will safeguard jobs and drive inclusive economic growth, boost rural incomes and support India’s ambition to become a global manufacturing hub,” Deloitte said.
The firm recommended measures such as enhanced export credit availability, concessional financing and simplified digital compliance systems to reduce the regulatory burden on small businesses. It also called for comprehensive training programmes to improve last-mile competitiveness of MSMEs, particularly those linked to global value chains.
Deloitte further suggested targeted export incentives or enhanced duty drawback support for tariff-sensitive sectors such as ready-made garments, gems and jewellery, and leather, which are more vulnerable to global trade disruptions.
Highlighting the risks from an increasingly protectionist global environment, Deloitte Economist Rumki Majumdar said rising uncertainty from tariff hikes, changes in rules of origin and non-tariff barriers could disproportionately affect Indian exporters. While the direct impact of global trade frictions on GDP growth may be limited to 40-80 basis points, the spillover effects on MSMEs and employment could be far more severe.
“MSMEs contribute 30.1 per cent to GDP, account for 45.79 per cent of India’s exports and employ nearly 290 million people; disruptions in export markets or tightening trade rules pose serious risks to jobs and income stability,” Majumdar said.
Beyond MSMEs, Deloitte emphasised the need for a strategic push on critical minerals to secure supply chains and support India’s clean energy transition. It proposed setting up a dedicated critical minerals fund to finance overseas acquisitions and technology partnerships, ensuring long-term access to essential resources.
The firm also recommended deeper global collaboration with regions such as Africa, Australia and Latin America to secure upstream access to minerals, alongside joint research and development in mineral processing and recycling. In addition, it called for incentives to promote investments in renewable energy, green hydrogen and grid-scale energy storage.
Deloitte said expanded funding for exploration, extraction and processing of key critical minerals, including lithium, cobalt and rare earth magnets, would be crucial to reduce import dependence and strengthen India’s strategic and economic security in the years ahead.
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January 16, 2026, 15:02 IST
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Pakistan Stock Exchange (PSX) on Friday staged a strong comeback, breaking the long bearish momentum as snowballing forex reserves have lifted investor sentiment.
During intraday trading, the PSX’s benchmark KSE-100 index gained a whopping 3,146.23 points to climb to 184,602.56 points, marking a positive change of 1.70%.
Out of 562 active companies, share prices of 375 advanced and of 67 declined while rates of 120 companies remained unchanged.
Economic analysts said the uptick offered some breathing space for the economy, even as the country continued to keep a close watch on external inflows and outflows.
Pakistan’s foreign exchange reserves inched up by $16 million over the past week, according to figures released by the State Bank of Pakistan.
The central bank said its official reserves rose from $16.0557 billion to $16.0718 billion, showing a modest gain during the week.
Overall, the country’s total reserves climbed to $21.2484 billion.
The State Bank also noted that commercial banks’ holdings went up by $5.6 million, reaching $5.1927 billion.
The central bank projects the FY26 current account deficit at 0–1% of GDP and sees reserves at $17.8 billion by June 2026 with planned official inflows.
A day earlier, the stock exchange dropped by over 1,100 points due to massive selling pressure.
The PSX had extended losses after recording an increase for a brief period as investors seemed cautious amid rising geopolitical tensions involving Iran.
During intraday trading, the KSE-100 index touched 183,717.53 due to strong buying in the early sessions before it turned bearish by losing 69.29 points to close at 182,500.52 points.
International officials have warned that US military intervention in Iran now appears likely and could take place within the next 24 hours amid sharply escalating tensions in the Middle East.
American, European and Israeli sources said preparations for possible action were under way as Washington began evacuating personnel from its major air base in Qatar.
H&M India unveils official Lollapalooza India 2026 collection
Green energy exports: $10-bn green ammonia project positions India as global clean-fuel supplier; Kakinada plant nears key milestone – The Times of India
Budget 2026 Should Support MSMEs, Critical Minerals For Boosting Trade Resilience: Deloitte
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