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

MercoPress. South Atlantic News Agency Thursday, August 13th 2026 - 22:46 UTC The project seeks to turn gas from the Vaca Muerta formation, in Neuquén province, into liquefied natural gas exports Argentina's majority state-owned oil company YPF confirmed on Thursday that it has filed an application for the Argentina LNG project to join the Large Investment Incentive Regime (RIGI). The venture, developed alongside Italy's Eni and the Emirati company XRG, contemplates an estimated outlay of 51 billion dollars over its full life, the largest figure submitted so far under the scheme. The project seeks to turn gas from the Vaca Muerta formation, in Neuquén province, into liquefied natural gas exports. Its design includes gas production in Neuquén, dedicated transport infrastructure, processing plants, liquids fractionation trains and two floating liquefaction units with a combined capacity of 12 million tonnes a year, which will operate off the coast of Río Negro, in the San Matías Gulf, from 2031. The consortium plans to scale up to 18 million tonnes. “We are talking about a growth platform that will generate employment, technological development, local suppliers and an unprecedented international position for our country,” said Horacio Marín, YPF's chairman and chief executive, in the company's statement, which described joining the scheme as “a fundamental step.” The RIGI, created under the Ley Bases, grants long-term legal, tax, customs and foreign exchange stability, conditions the company considers essential to attract international financing. The largest project filed under the scheme until now was LLL Oil, at 25 billion dollars, in May. The investment plan foresees some 5 billion dollars for the initial exploration and drilling phase, and 29 billion over the next five years to bring the two floating units into operation, of which 24 billion corresponds to infrastructure: industrial complexes, dedicated pipelines and port facilities. The company estimates export revenues of close to 10 billion dollars a year over twenty years. A substantial portion of the financing will be structured through project finance backed by long-term export contracts with investment-grade buyers. JP Morgan is acting as arranger. The first stage amounts to 15.5 billion dollars and, according to Marín, 47 banks submitted offers worth 2.4 times the amount sought. The company holding the blocks was set up with YPF holding 36% of the capital and Eni and XRG 32% each. XRG is the international investment arm of ADNOC, Abu Dhabi's state oil company. Eni, which leads engineering on the development, placed the final investment decision towards the end of 2026 and described the project as a global leader in liquefied natural gas. During the construction stage, planned between 2026 and 2030, YPF calculates some 20,000 annual jobs including direct, indirect and induced positions, peaking at up to 40,000 in the third year, and around 8,000 during the operational phase. Contracting of domestic suppliers is estimated at 15 billion dollars.