Argentina LNG has applied to join Argentina’s Large Investment Incentive Regime as YPF, Eni and XRG advance a $51bn LNG export project based on Vaca Muerta gas towards a final investment decision by the end of 2026, according to YPF.
The $51bn covers estimated cumulative investment over the project’s life and would make it Argentina’s largest proposed private investment and the biggest RIGI application to date. Eni called the filing an “important milestone” towards FID.
The project combines gas production in Neuquén with processing, liquids fractionation, transport infrastructure and two FLNG units off Río Negro in the Gulf of San Matías, with combined capacity of 12 million tonnes per annum.
Investment is expected to reach about $29bn by 2031, including around $24bn for infrastructure, pipelines, port facilities and FLNG units and $5bn for upstream development and drilling.
YPF chairman and chief executive Horacio Marín said: “Joining the RIGI framework is a fundamental step toward advancing a project that will open a new chapter for Argentina as a global energy exporter.”
Upstream ownership is set at 36% for YPF and 32% each for Eni and XRG, subject to regulatory approvals, with YPF remaining operator. The resources comprise five unconventional Vaca Muerta blocks.
A 527-km, 48-inch pipeline from Meseta Buena Esperanza in Neuquén to Sierra Grande in Río Negro is designed to carry about 100 million cubic metres of gas per day. A steel tender is expected in about two months.
YPF expects about $10bn a year in export revenues for two decades. Construction is scheduled for 2026-2030, supporting about 20,000 jobs annually and up to 40,000 at peak activity. Around 8,000 direct and indirect jobs are expected in operation, while about $15bn of goods and services are planned from Argentine suppliers.
International project finance is expected to be backed by long-term export contracts with investment-grade buyers. Marín said 47 banks had provided financing indications, with interest equal to about 2.4 times the funding requirement under discussion for the first stage.
YPF is an Argentine vertically integrated energy company active across oil, gas, refining, marketing and power. The Argentine government owns 51%.
Eni is an Italian energy company active in oil and gas, LNG, power, refining, chemicals and low-carbon businesses.
XRG is an international energy investment company focused on natural gas, chemicals and energy solutions and is wholly owned by Abu Dhabi National Oil Company, ADNOC.
ADNOC is Abu Dhabi’s state-owned energy company operating across upstream, downstream, gas, petrochemicals and energy investment.