Argentina LNG Seeks RIGI Approval for Record-Breaking $51B Investment

Argentina LNG, a joint venture between YPF, Eni, and XRG, has submitted an application to join the Incentive Regime for Large Investments (RIGI) program. The program provides a long-term framework of legal, tax, customs, and foreign-exchange stability essential for large-scale energy infrastructure projects focused on exports.

The project aims to develop an integrated liquefied natural gas production and export facility with a cumulative investment of $51 billion over its lifespan. This will be the largest private investment in Argentina's history and the largest under the RIGI program to date, according to the announcement.

The project scope involves transforming Vaca Muerta's natural gas resources into LNG exports for international markets. The integrated value chain includes rich-gas production in Neuquén, dedicated transportation infrastructure, processing plants, liquids fractionation trains, and two floating liquefaction units (FLNGs) with a combined capacity of 12 million metric tons per year.

The FLNG units will operate offshore Río Negro in the Gulf of San Matías, with construction scheduled to take place between 2026 and 2030. The estimated investment through 2031 is approximately $29 billion, with about $24 billion allocated to strategic infrastructure and approximately $5 billion invested in upstream development.

The project is expected to generate approximately $10 billion in annual export revenues for two decades, according to Horacio Marín, president and CEO of YPF. He stated that joining RIGI is a fundamental step towards advancing the project, which will open a new chapter for Argentina as a global energy exporter.