Argentina LNG Adds Second Corporate Vehicle for Midstream Financing

Argentina's state-controlled oil and gas company YPF has disclosed a second corporate vehicle for its Argentina LNG project, MIDCO ARLNG I. This midstream entity will hold the project's transport and processing assets and raise debt independently of the upstream segment. The announcement was made in a presentation to Argentina's Chamber of Deputies, which revealed that MIDCO will take over midstream financing.

The new vehicle separates production from transport and processing, allowing each segment to borrow against its own cash flows with its own security package and lender group. This approach is expected to attract different types of lenders and allow for more flexible financing arrangements.

The project's founding partners have already agreed on the contractual engineering, including supply, transport, and offtake contracts. These agreements will serve as the basis for the credit structure, which will be built on top of the information provided by these contracts.