YPF has secured its first buyers for the largest energy project in Argentina’s history, named Argentina LNG. The agreement was announced at the Gastech 2026 fair in Bangkok, and represents the largest private investment in the country to date.
The state-owned oil company, in partnership with Italy’s Eni and the Emirati XRG, plans to export liquefied natural gas (LNG) from the coasts of Río Negro. Horacio Marín, president and CEO of YPF, detailed that the company is about to sign between two and three sales contracts that will range from 0.5 to 1.5 million tons annually. Sources noted that more than one agreement has already been finalized, exceeding previous public expectations. The final investment decision is expected in November.
A key aspect is that Eni and XRG, in addition to being partners with approximately 32% stake each, also act as buyers for part of the production. This ensures that a portion of the LNG already has a secured market before signing contracts with third parties. The agreements under negotiation refer to the volume available for the open market once that portion is deducted.
The project entails unprecedented infrastructure in the Argentine energy industry, including the construction of two floating liquefaction plants with an initial capacity of 12 million tons per year, expandable to 18 million. A 527-kilometer gas pipeline from Neuquén is planned, along with a liquids pipeline and a treatment plant comparable to YPF’s main refinery in La Plata.
The total investment will reach USD 51.000 million, financed 70% through international credit and the remaining 30% through direct contributions from the partners. The formal approval of the project under the Incentive Regime for Large Investments (RIGI) is still pending.
YPF controls 36% of the blocks that will feed the project, while Eni and XRG each hold 32%. The reserves are located in Vaca Muerta, one of the largest unconventional gas deposits in the world. According to Marín, the initial investment has received strong financial backing, with a total offer of 2.4 times the required amount in the initial financing rounds.
The global market context is complex, with increased demand for LNG from buyers in Asia and Europe seeking alternatives. Argentina is expected to achieve exports of USD 10.000 million annually starting in 2031, playing a key role in global energy supply.
Source: www.infobae.com
