Argentina's largest investment project aims to export Vaca Muerta gas

Argentina's largest investment project, the Argentina LNG, aims to export gas derived from the Vaca Muerta formation in Neuquén province. Developed jointly by Argentina's state-owned oil company YPF, Italy's Eni, and the Emirati firm XRG, the $51 billion project will be the largest submitted to the Large Investment Incentive Regime (RIGI).

The venture encompasses gas production, transport infrastructure, processing plants, fractionation trains, and two floating liquefaction units with a combined capacity of 12 million tonnes annually, set to operate from 2031 off the coast of Río Negro. Upon expansion, the capacity could reach 18 million tonnes. YPF's chairman, Horacio Marín, emphasized the project's potential to generate employment, foster technological development, support local suppliers, and establish a significant international position for Argentina.

The RIGI, established under the Ley Bases, offers long-term legal, tax, customs, and foreign exchange stability, crucial for international financing. The RIGI's previous largest entrant was LLL Oil, valued at $25 billion. YPF estimates export revenues of nearly $10 billion annually over two decades, with 47 banks submitting offers totaling double the required amount for the first stage.

The project is projected to create around 20,000 jobs during construction, peaking at 40,000 in the third year, and approximately 8,000 during operation, with domestic contracting estimated at $15 billion.