Key facts
- The U.S. government will lend up to $6 billion to Argentina's first LNG export project.
- The project is led by Argentina's YPF in partnership with Italy's Eni and UAE's XRG.
- The financing is part of the new Andes-Atlantic Corridor initiative.
- The project aims to utilize Vaca Muerta's shale gas resources.
- The project includes two Floating Liquefied Natural Gas (FLNG) units with a combined capacity of 12 million tonnes per year.
- Partners target a final investment decision by the end of 2026.
The U.S. government is set to back Argentina's significant liquefied natural gas (LNG) export project with a substantial loan of up to $6 billion. This financial backing, channeled through the Export-Import Bank of the United States (EXIM), is part of the newly established Andes-Atlantic Corridor initiative aimed at modernizing infrastructure and strengthening U.S.-Argentinian ties. The State Department indicated that U.S. financing agencies will collaborate with the private sector on Corridor projects.
The proposed financing from EXIM is earmarked to procure U.S. goods and services essential for the project's development and operations. This includes contracts already awarded to McDermott for a natural gas liquids fractionation and gas treatment facility, and to U.S. firm Pumpco (a MasTec, Inc. subsidiary) in partnership with Bonatti and Contreras Hnos. for the export pipeline system, valued at over $1 billion, pending a final investment decision.
The Argentina LNG project, a collaboration between Argentina's YPF, Italy's Eni, and UAE's XRG, aims to leverage the vast shale gas reserves of the Vaca Muerta region. The project's scope encompasses an integrated LNG value chain, from upstream gas production to export infrastructure, including transportation, processing facilities, and two Floating Liquefied Natural Gas (FLNG) units with a combined capacity of 12 million tonnes per year, to be situated offshore Río Negro province. The partners are targeting a final investment decision by the end of 2026. The project's development is also seeking support through Argentina's Large Investment Incentive Regime (RIGI).