$51 Billion Argentina LNG Export Project Seeks RIGI Approval

Argentina LNG, a liquefied natural gas project backed by YPF, Eni, and Abu Dhabi-based XRG, has applied for inclusion in Argentina's Large Investment Incentive Regime (RIGI) as it works toward a final investment decision by the end of 2026. The proposed integrated development would connect natural gas production from Argentina's Vaca Muerta shale formation with processing, transportation, and LNG export infrastructure.

The project calls for two floating LNG vessels offshore Río Negro province with combined liquefaction capacity of 12 million tonnes per year. YPF said in a separate project announcement that total spending over the life of Argentina LNG could reach $51 billion, making it the largest project submitted under the RIGI framework to date.

Securing terms through RIGI would help underpin the financing of this capital-intensive project intended largely for export markets. The application follows several steps by the partners to deepen their involvement in the project, including a binding joint development agreement signed in February and an acquisition deal announced in June where Eni and XRG agreed to acquire stakes in the upstream company holding gas acreage dedicated to Argentina LNG.

The project is part of Argentina's broader push to convert Vaca Muerta's large unconventional gas resources into sustained LNG exports. If developed as planned, it would add a new source of LNG supply from South America at a time when producers in the United States, Qatar, and other markets are also expanding liquefaction capacity.