Argentina Seeks Global Dominance in LNG Market with Multiple Projects
Argentina is on track to become one of the world's largest LNG exporters with multiple projects in development, including the Southern Energy Project (SESA) and Argentina LNG. The combined capacity of these two projects could reach over 20 million tons per annum (MTPA), making Argentina a major player in the global LNG market.
The San Matias Pipeline (SMP) is one of the key infrastructure projects being built to support SESA, with an estimated investment of $1.3 billion and a 473-kilometer pipeline that will transport natural gas from Vaca Muerta to the Gulf of San Matias.
The SMP secured a $900 million loan last year, which includes a three-year grace period, and will be used to finance the construction of SESA's two liquification plants, Hilli Episeyo and Esperanza (formerly known as MKII) FLNG vessels. The vessels are expected to begin operations in 2027 and 2028, respectively.
The combined capacity of these two facilities is 6 MTPA, equivalent to 27 million cubic meters of natural gas per day. SESA forecasts investments of $15 billion across the project's 20-year life, with projected exports exceeding $20 billion from 2027 through 2035.