JPMorgan and Santander Lead $15 Billion Financing Push for Argentina LNG

JPMorgan and Santander are set to spearhead a $15 billion financing push for Argentina's LNG project, Bloomberg has reported, citing unnamed sources. The total funding potential for the project is $15 billion, with a final investment decision expected by November. The Argentina LNG project is a collaboration between Italy’s Eni, Argentina's state energy company YPF, and Emirati firm XRG.

The plant, to be situated on Argentina’s Atlantic coast, is anticipated to have a production capacity of 12 million tons of liquefied gas annually, potentially increasing to 18 million tons. The project’s total cost is $24 billion and includes two floating liquefaction trains, two cross-country pipelines, and a plant for generating natural gas liquids.

This financing amount surpasses Argentina's existing loan agreement with the International Monetary Fund, which is valued at $20 billion. Given the trend of LNG projects exceeding their original budgets, the funding gap could widen further. The project will utilize gas from Argentina’s Vaca Muerta shale play, which holds the second-largest technically recoverable shale gas reserves globally, surpassed only by the U.S. Marcellus.

Argentina’s total liquefied gas production potential could reach 24 million tons annually. Vaca Muerta has already elevated Argentina to the fourth-largest oil producer in Latin America. The government is actively promoting the development of the local energy sector, encouraging infrastructure projects to boost the off-take capacity of the Vaca Muerta.

Natural gas output from Vaca Muerta currently stands at 5.5 billion cubic feet daily, near the all-time high of 5.7 billion cubic feet daily recorded in July 2025. The natural gas reserves from Vaca Muerta are estimated at 308 trillion cubic feet.