U.S. to Back Argentina’s First LNG Export Project With $6 Billion Loan
The U.S. government has signaled readiness to support Argentina’s first large-scale LNG export project with up to $6 billion in financing through the Export-Import Bank, backing a venture led by Argentina’s YPF alongside Italy’s Eni and Emirati firm XRG. The commitment is part of a broader Andes-Atlantic Corridor initiative between Washington and Buenos Aires to bolster and modernize infrastructure, with U.S. agencies positioned to co-finance Corridor projects alongside private investors.
Why It Matters
This potential EXIM term sheet represents a major U.S. endorsement of Argentina’s plan to develop an integrated LNG value chain leveraging Vaca Muerta shale gas, and could materially affect financing and procurement for the $51 billion project. The move supports Argentina’s push to attract foreign investment in energy infrastructure under President Javier Milei and advances U.S. involvement in regional energy and infrastructure projects.
Key Facts
- Projected EXIM support: Up to $6 billion in a non-binding indicative term sheet from the Export-Import Bank of the United States
- Total project cost: $51 billion
- Project partners: YPF (Argentina), Eni (Italy), XRG (United Arab Emirates)
- Planned LNG capacity: Two FLNG units with combined 12 million tonnes per year (MTPA) of liquefaction capacity
- Supply source: Will use Vaca Muerta shale gas resources for upstream production and integrated value chain development.
The U.S. government has indicated it is prepared to back Argentina’s proposed LNG export project with up to $6 billion in financing through the Export-Import Bank of the United States (EXIM), according to the U.S. Department of State. The financing would be provided via a non-binding indicative term sheet and is aimed at supporting procurement of U.S. goods and services needed for the project’s infrastructure and production activities.
The initiative is tied to a newly launched Andes-Atlantic Corridor, a bilateral U.S.-Argentine effort to strengthen and modernize infrastructure. The State Department said U.S. government financing agencies can participate alongside private-sector investors in financing Corridor projects. The EXIM support is intended specifically to facilitate purchase of U.S. equipment and services, including work tied to contracts already awarded for the venture.
The LNG project is led by Argentina’s YPF in partnership with Italy’s Eni and Emirati firm XRG, and is being developed as an integrated value chain spanning upstream gas production, transportation and processing, and export infrastructure. Planned facilities include two floating liquefied natural gas (FLNG) units offshore Río Negro province with a combined liquefaction capacity of 12 million tonnes per year. The overall project is estimated to cost about $51 billion.
Several contracts have been disclosed as part of the buildout: McDermott was awarded an engineering, procurement, construction and commissioning contract for a natural gas liquids fractionation and gas treatment facility, and Pumpco (a MasTec subsidiary), together with Bonatti and Contreras Hnos., has been named for an export pipeline EPC contract worth more than $1 billion, subject to a final investment decision. The project partners recently applied to Argentina’s Large Investment Incentive Regime (RIGI) and are targeting a final investment decision by the end of 2026.
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