$51 Billion Argentina LNG Project Aims to Transform Vaca Muerta Gas into International Exports

Argentina's state-owned oil company YPF has submitted an application for its 'Argentina LNG' project to participate in President Javier Milei's investment incentive scheme, Régimen de Incentivo para Grandes Inversiones (RIGI). The massive plan calls for a total investment of $51 billion and aims to develop the Vaca Muerta shale formation's gas resources for export as liquefied natural gas (LNG).

The project, backed by YPF, Italy's Eni, and United Arab Emirates energy firm XRG, is considered 'the most important investment presented to date' under RIGI. According to YPF Chair and CEO Horacio Marín, the project will transform natural gas from Vaca Muerta into LNG exports destined for international markets.

The investment plan includes a $29 billion commitment by 2031, with approximately $24 billion going towards infrastructure development. The remaining $5 billion will be invested in upstream development and drilling wells to supply both liquefaction units at full capacity.