The US will support Argentina’s LNG with financing of up to US$6 billion.

The United States is moving forward with a financing proposal of up to US$6 billion for Argentina LNG, the project by YPF, Eni and XRG that seeks to bring gas from Vaca Muerta to international markets.

The support would be channeled through the Export-Import Bank of the United States (EXIM) and would be intended for goods, services and infrastructure linked to the development of the export complex.

EXIM proposes to finance part of Argentina’s LNG

According to available information, EXIM issued an indicative and non-binding letter of terms for up to US$6 billion for Argentina LNG.

The complete initiative envisions investments estimated at US$51 billion throughout its development. US financing would cover a portion of the purchases of equipment and services originating in the US.

Likewise, the proposal is integrated into Andes-Atlantic Corridor this is a bilateral initiative aimed at boosting infrastructure projects and strengthening supply chains between Argentina and the United States. The loan is still subject to the corresponding approval processes within EXIM.

Vaca Muerta will be the base of the LNG export chain

Argentina LNG seeks to develop an integrated supply chain that will begin with the gas production in Vaca Muerta and will end the export of liquefied natural gas.

The plan includes production, transportation, processing, liquid separation, and liquefaction. It also includes dedicated infrastructure to transport large volumes of gas from Neuquén to the Río Negro coast.

The marine facilities will incorporate two floating liquefied natural gas units, known as FLNGs.

Together, these units will have a planned capacity of 12 million tons of LNG per year during the first stage of the project.

Two FLNG units will operate off the coast of Río Negro.

The liquefaction units will be located off the coast of Río Negro. From there, the processed gas can be loaded directly into LNG carriers intended for international markets.

The use of FLNG infrastructure allows part of the liquefaction process to be moved to the sea and reduces the need to build all the industrial capacity on land.

The project also includes gas treatment plants, liquid fractionation facilities, and new transportation systems.

According to the analyzed HTML, the start of operations of the FLNG units is planned for around 2031.

McDermott will participate in the processing infrastructure

Part of the financing proposed by EXIM would be linked to US goods and services used in the project.

Among them is the contract awarded to McDermott for engineering, procurement, construction and commissioning work for a gas treatment plant and natural gas liquids fractionation plant.

This infrastructure will be necessary before sending the gas to the liquefaction facilities.

The participation of US suppliers also explains EXIM’s interest, whose activity is geared towards supporting US exports of goods and services.

Pumpco will participate in the gas pipeline system

The project also includes a contract worth over US$1 billion for the export gas pipeline system.

Pumpco, a subsidiary of MasTec, participates together with Bonatti and Contreras Hnos. in the consortium selected to carry out engineering, procurement and construction work.

The award is subject to the final investment decision for the project. The pipelines will be a central component of Argentina LNG because they will be responsible for transporting the gas from the production areas to the processing and export infrastructure.

The project seeks to enter the RIGI regime

Argentina LNG’s partners requested to join the Incentive Regime for Large Investments, known as RIGI.

The regime offers a specific framework for large-scale projects and could support the investment scheme planned by YPF, Eni and XRG.

According to available information, the partners expect to make the final investment decision towards the end of 2026.

That body will determine the final progress of the main works, the associated contracts and the construction schedule.

Argentina LNG aims to transform Vaca Muerta gas into exports

The project connects several segments of the gas industry into a single chain. It begins with production from Vaca Muerta, continues with transportation and processing, and ends with liquefaction for export.

With an initial planned capacity of 12 MTPA, Argentina LNG would significantly expand the infrastructure available to place Argentine gas on the international market.

EXIM’s proposal adds a potential source of financing for equipment, works, and services needed during the development stage.

The decisive step will be the final investment decision, planned for the end of 2026, which will define the start of the large-scale implementation phase.

Source: Export-Import Bank of the United States

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