Argentina Secures $900M for Vaca Muerta LNG Project

Argentina's Vaca Muerta LNG project has secured its first international financing with a US$900-million loan from global capital markets. The deal, which covers most of the estimated US$1.3-billion total cost, was arranged by Citi, JP Morgan, Santander, and Itaú, along with other banks.

The Southern Energy project (SESA) consortium comprises Pan American Energy (30 percent), YPF (25 percent), Pampa Energía (20 percent), Harbour Energy from Britain (15 percent), and Golar LNG from Norway (10 percent). The syndicated loan is backed by the project's future cash flows, underpinned by long-term transport contracts with a seven-year repayment schedule including a three-year grace period.

The pipeline, which will run 472 kilometres with a 36-inch diameter, is designed to carry 27 million cubic meters of natural gas per day from Tratayén to the LNG system on the Río Negro coastline. Construction is set to begin in August and is expected to be completed by mid-2028.

The project's legal protections were sealed in June when it was admitted to the Régimen de Incentivo para Grandes Inversiones (RIGI) investment incentive scheme, and environmental impact approval has been received from the Neuquén and Río Negro provincial governments.