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41 min ago 2 min read
Argentina LNG has submitted an application to join the country’s large investment incentive regime (Rigi) for the development of its $51bn LNG project.
Rigi offers tax, customs and foreign exchange benefits and normalises Argentina’s regulatory framework by aligning with global standards. The regime is open to investments exceeding $200m.
The LNG project, promoted by YPF, Eni and XRG, involves the development of an integrated value chain that aims to transform Vaca Muerta’s natural gas resources into LNG exports for international markets.
Its design includes gas production in Neuquén, dedicated transportation infrastructure, processing facilities, liquids fractionation trains, and two floating LNG units (FLNGs) with a combined capacity of 12 million tonnes per annum, which will operate offshore Río Negro in the Gulf of San Matías.
Energy technology specialist for the San Matias pipeline in Río Negro province to support the project, it was announced in April.
Horacio Marín, Chairman and CEO of YPF, said joining the Rigi framework is a fundamental step toward advancing a project that will open a new chapter for Argentina as a global energy exporter.
“We are talking about a growth platform that will generate jobs, technological development, opportunities for local suppliers, and an unprecedented level of international integration for our country,” he said.
The project is expected to generate export revenues of approximately $10bn per year over 20 years, making a significant contribution to Argentina’s trade balance and foreign currency inflows.
By 2031, the expected startup date of the two FLNGs, investment is expected to reach approximately $29bn.
Around $24bn will be allocated to the development of strategic infrastructure, including industrial complexes, dedicated pipelines, port facilities and the units, while approximately $5bn will be invested in upstream development and the drilling of the wells required to achieve the production levels needed to fully supply both liquefaction units.
During the project’s construction phase, a substantial portion of the investment will be financed through a project finance structure sourced from international markets.
This financing will be supported by long-term export agreements with international buyers holding investment-grade credit ratings.
