en.Wedoany.com Reported - On August 13, the Argentina LNG project, jointly promoted by Argentine national energy company YPF, Italy's Eni Group, and XRG, the investment platform under Abu Dhabi National Oil Company, formally applied to join Argentina's Large Investment Incentive Scheme (RIGI). The project's total estimated investment over its full lifecycle is $51 billion. At this stage, the submission of the application does not yet represent approval under RIGI or a final investment decision.
Argentina LNG will cover the entire industrial chain, including natural gas production, transportation, processing, liquid fractionation, liquefaction, and export. The project plans to develop rich gas resources from the Vaca Muerta shale area in Neuquén Province, transport them via dedicated pipelines to processing facilities and liquid fractionation units, and then feed them into two floating liquefied natural gas (FLNG) vessels located offshore in the San Matías Gulf, Río Negro Province. Each of the two FLNG vessels is designed with a production capacity of 6 million tons per year, for a combined annual LNG output of 12 million tons.
According to YPF's disclosed investment plan, by the time the two FLNG vessels are scheduled to commence operations in 2031, cumulative project investment is expected to reach approximately $29 billion. Of this amount, about $24 billion will be allocated to the industrial complex, dedicated gas pipelines, port facilities, and the two FLNG vessels, while approximately another $5 billion will be used for upstream gas field development and associated drilling to build the natural gas supply capacity required to support the operation of the two liquefaction units.
Part of the project's construction funding is planned to adopt an international project finance model, backed by long-term LNG export agreements with investment-grade international buyers. YPF estimates that once the project is fully operational, it can generate approximately $10 billion in annual export revenue for about 20 years. The relevant figures are projections made by the project parties based on current plans and may still be adjusted in line with financing, engineering design, and project implementation developments.
On February 12, 2026, YPF, Eni, and XRG signed a binding joint development agreement, confirming the launch of front-end engineering design (FEED) as well as engineering, technical, commercial, and financing work, with the goal of advancing a final investment decision in the second half of 2026. On June 29, the three parties also signed an upstream equity transaction agreement, proposing to incorporate blocks such as Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas into a dedicated project company. Upon completion of the transaction, Eni and XRG will each hold a 32% stake, while YPF will retain 36%. The relevant arrangements remain subject to conditions such as regulatory approvals.
RIGI applies to large-scale investments in energy, oil and gas, infrastructure, mining, and other sectors. Once a project application is approved, the implementing entity can obtain tax, customs, foreign exchange, and regulatory stability guarantees within a specified period, with the statutory stability period typically being 30 years from the date of enrollment. Argentina LNG's submission of this application adds institutional conditions for its subsequent financing and investment decisions, but the project still needs to complete procedures including RIGI approval, front-end engineering design, project financing, and a final investment decision.
YPF estimates that the project's construction phase will run from 2026 to 2030, involving an average of approximately 20,000 direct, indirect, and induced jobs per year, with peak construction employment reaching around 40,000; during the operations phase, approximately 8,000 related jobs are expected to be maintained annually. The project parties also estimate that procurement of goods and services from Argentine domestic suppliers over the full cycle will amount to approximately $15 billion.
