Argentina Secures US$900 Million Loan for First LNG Export Project
Argentina's first-ever international financing for a liquefied natural gas (LNG) export project has been secured, with US$900 million in loans from global capital markets. The Southern Energy project (SESA), which includes Pan American Energy, YPF, Pampa Energía, Harbour Energy, and Golar LNG, will use the funds to build a dedicated pipeline connecting the Vaca Muerta shale fields with the Río Negro coast.
The syndicated loan was arranged by Citi, JP Morgan, Santander, and Itaú, with BBVA, Bladex, Barclays, ICBC, and the Bank of China also participating. The deal marks a milestone for Argentina's LNG export plans, which aim to supply Europe and other markets.
The pipeline will run 472 kilometers with a 36-inch diameter, 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 this August, with completion slated for mid-2028.