The U.S. government has announced its readiness to support a significant Argentina LNG project by providing up to $6 billion in potential financing. This initiative is part of the newly launched Andes-Atlantic Corridor, a collaborative effort between the U.S. and Argentina designed to modernize infrastructure. Through this partnership, U.S. government agencies are positioned to assist in funding development alongside private sector entities, according to the U.S. Department of State.
Role of the Export-Import Bank
In the energy infrastructure sector, the Export-Import Bank of the United States (EXIM) has issued a non-binding indicative term sheet for the Argentina LNG project. This $6 billion offer is intended to facilitate the procurement of U.S. goods and services necessary for the development and production phases of the venture. This support is directed toward projects such as the contract awarded to McDermott for the engineering, procurement, construction, and commissioning of a gas treatment and liquids fractionation facility.
Project Details and Investment Scope
The Argentina LNG project is led by YPF in partnership with Italy’s Eni and the Emirati firm XRG. The overall endeavor is valued at $51 billion and aims to leverage the extensive shale gas resources of Vaca Muerta.
- Export Pipeline Development: A contract exceeding $1 billion has been awarded to a partnership including Pumpco, a MasTec subsidiary, alongside Bonatti and Contreras Hnos., for the export pipeline system, contingent upon a final investment decision.
- Production and Infrastructure: The project intends to create an integrated value chain that spans upstream production to final export infrastructure. This includes the deployment of two Floating Liquefied Natural Gas units with a total capacity of 12 million tonnes per year, situated offshore the Río Negro province.
The consortium has formally applied to join the Large Investment Incentive Regime (RIGI) in Argentina to facilitate this large-scale investment. Partners involved in the energy infrastructure are currently working toward reaching a final investment decision by the end of 2026.
