Argentina LNG Submits $51 Billion LNG Project Application to RIGI

en.Wedoany.com Reported - Argentina LNG has submitted an application to join Argentina's Large Investment Incentive Scheme (RIGI) to develop its integrated liquefied natural gas (LNG) production and export project. With a total investment of $51 billion over the project's full lifecycle, it is the largest private investment project in Argentina's history and the largest project submitted under the RIGI framework to date.

The project, driven jointly by YPF, Eni, and XRG, aims to build an integrated value chain that converts natural gas resources from Vaca Muerta into LNG for export to international markets. The project design includes rich gas production in Neuquén Province, dedicated transportation infrastructure, processing facilities, liquid fractionation units, and two floating liquefied natural gas (FLNG) units with a total capacity of 12 million tons per year, to be deployed offshore in the Gulf of San Matías in Río Negro Province.

Horacio Marín, Chairman and CEO of YPF, stated: "Joining the RIGI framework is a key step in advancing this project, which will open a new chapter for Argentina as a global energy exporter. This is a growth platform that will create jobs, promote technological development, generate opportunities for local suppliers, and bring an unprecedented level of international integration to our country."

Submitting the RIGI approval application is a critical milestone in the development of the Argentina LNG project. The scheme provides a long-term framework of legal, fiscal, customs, and exchange-rate stability, which is essential for supporting large-scale, capital-intensive, export-oriented energy infrastructure projects. These conditions are necessary to attract the investment and long-term international financing required to execute such initiatives.

In terms of economic and export impact, the project is expected to generate approximately $10 billion in annual export revenue over the next two decades, making a significant contribution to Argentina's trade balance and foreign exchange inflows.

Regarding investment and financing arrangements, the investment plan projects total expenditures of $51 billion over the project's full lifecycle. By 2031, when the two FLNG units are expected to commence operations, investment is projected to reach approximately $29 billion. Of this amount, around $24 billion will be allocated to developing strategic infrastructure, including industrial complexes, dedicated pipelines, port facilities, and the two FLNG units; approximately $5 billion will be invested in upstream development and drilling to achieve the production levels required to fully supply the two liquefaction units.

During the project's construction phase, the majority of investment will be financed through project finance structures sourced from international markets, one of the most widely used solutions for large-scale global energy infrastructure projects. This financing will be supported by long-term export agreements with international buyers holding investment-grade credit ratings.

In terms of job creation and local development, during the construction phase scheduled from 2026 to 2030, Argentina LNG is expected to create approximately 20,000 jobs annually, including direct, indirect, and induced employment. At the peak of construction activity (expected in the project's third year), the workforce could reach a peak of 40,000 people.

During the operational phase and throughout the project's full lifecycle, the project is expected to sustain approximately 8,000 jobs annually, including direct and indirect employment, contributing to the economic development of Neuquén Province, Río Negro Province, and the broader national energy value chain.

The project is also expected to drive extensive participation from domestic suppliers, with an estimated procurement of approximately $15 billion in goods and services, supporting the development of local industries and the build-out of energy-related production capacity.