State oil company YPF has submitted documentation seeking approval for the largest investment project to date under President Javier Milei’s investment incentive scheme, a US$51-billion plan to produce and export liquefied natural gas (LNG).
The so-called “Argentina LNG” project is the “most important investment presented to date” under the Régimen de Incentivo para Grandes Inversiones (RIGI), said YPF Chair and CEO Horacio Marín, who revealed that the project would be developed in partnership with Italy’s Eni and the United Arab Emirates’ XRG.
“This project will transform natural gas from Vaca Muerta into LNG exports destined for international markets,” Marín said.
The project will include the production of rich gas in Neuquén province, dedicated transport infrastructure, processing plants and liquid-fractionation trains, as well as two floating LNG (FLNG) units with a combined capacity of 12 million tonnes per annum (MTPA). The units will operate off the coast of Río Negro, in the Gulf of San Matías.
Vaca Muerta, one of the world’s largest shale oil and gas formations, is at the centre of Argentina’s drive to increase hydrocarbon production and turn the country into a major energy exporter.
By 2031, the target date for commissioning the two FLNG units, investment in the project is expected to reach approximately US$29 billion, Marín said.
Of that amount, roughly US$24 billion will be earmarked for infrastructure, while the remaining US$5 billion will be invested in upstream development and drilling the wells needed to increase production sufficiently to supply both liquefaction units at full capacity.
“Adhering to RIGI is a crucial step to move forward with a project that will open a new chapter for Argentina as a global energy exporter,” Marín said, highlighting the importance of the incentive programme.
Introduced by Milei’s government in 2024, RIGI offers tax, customs and regulatory benefits to large-scale investments, with the aim of attracting capital to strategic sectors including energy and mining.
During the planned construction phase from 2026 to 2030, “Argentina LNG” is expected to generate more than 20,000 jobs per year, Marín said. Around 8,000 jobs per year are expected to be sustained during the project’s operation and commissioning phase.
The project is also expected to generate significant business for domestic suppliers, with an estimated US$15 billion in contracts for goods and services. YPF said this would help expand local industry and develop productive capacity linked to Argentina’s energy sector.
– TIMES/NA
