U.S. to Back Argentina’s First LNG Export Project With $6 Billion Loan

The U.S. government has announced its intention to provide Argentina with up to $6 billion in loans to support the country's first liquefied natural gas (LNG) export project. The project, led by Argentina's national energy company YPF in collaboration with Italy's Eni and the United Arab Emirates-based firm XRG, is part of a newly established Andes-Atlantic Corridor initiative aimed at strengthening and modernizing infrastructure along the Andean and Atlantic regions.

The U.S. Department of State's EXIM bank has issued a non-binding indicative term sheet, expressing its willingness to finance the $51 billion project. This support is crucial for President Javier Milei, who has been pushing for foreign investment in infrastructure to boost Argentina's economy. The project, which involves the procurement of U.S. goods and services, includes the construction of a natural gas liquids fractionation and gas treatment facility, as well as an export pipeline system.

U.S. firm Pumpco, along with Bonatti and Contreras Hnos., has secured a significant contract worth over $1 billion for the export pipeline system. The partners are currently seeking to join Argentina's Large Investment Incentive Regime (RIGI) to further support the development of this large-scale LNG export project, which aims to utilize the vast shale gas resources in Vaca Muerte. The partners have set a target for a final investment decision by the end of 2026.