‘Argentina LNG’ – YPF confirms massive US$51-billion RIGI production plan

Argentina LNG, a colossal US$51-billion project, was officially confirmed by state oil company YPF to be the largest investment proposal under President Javier Milei’s Régimen de Incentivo para Grandes Inversiones (RIGI) scheme. The ambitious venture, to be undertaken in collaboration with Italy’s Eni and the United Arab Emirates’ XRG, promises to convert Vaca Muerta’s abundant natural gas into lucrative LNG exports destined for the international market.

Central to Argentina’s ambition to become a significant energy exporter, the project will be developed in Vaca Muerta, the world’s largest shale oil and gas formation, located in Neuquén province. This will necessitate the construction of extensive transport infrastructure, processing plants, and liquid-fractionation trains, as well as two floating LNG (FLNG) units with a combined production capacity of 12 million tonnes annually.

Projected to reach almost US$29 billion by 2031, when the two FLNG units are fully commissioned, the bulk of this investment (around US$24 billion) will be directed towards infrastructure, while the remaining US$5 billion will be allocated to upstream development and the drilling of necessary wells. Milei’s incentive programme is seen as pivotal to this initiative, designed to attract investment to strategic sectors like energy and mining.

During the construction phase from 2026 to 2030, the project is expected to generate over 20,000 jobs annually, with approximately 8,000 jobs anticipated during the subsequent operation and commissioning phase. Additionally, the project is expected to create approximately US$15 billion in business opportunities for domestic suppliers, bolstering the local industry and expanding productive capacity.