Argentina's Río Negro LNG Project Seeks Up to $15 Billion in Financing

The Río Negro LNG project in Argentina has reached a major milestone as JPMorgan and Santander lead talks for up to $15 billion in financing. The integrated project aims to convert Vaca Muerta's shale gas resources into liquefied natural gas (LNG) for international markets.

The proposed financing package ranges between $14 billion and $15 billion, which would cover a substantial portion of the estimated $24 billion project cost. The project will integrate gas production, processing, transportation, and offshore liquefaction infrastructure, featuring two floating LNG units with combined capacity of 12 million tonnes annually.

Argentina's energy infrastructure is set to be reshaped by this development, which would also strengthen the country's access to international gas markets. However, construction activity remains subject to financing completion, final approvals, and a Final Investment Decision (FID), which the partners target towards the end of 2026.

The project's sponsors include YPF, Eni, and XRG, with JPMorgan and Santander leading financing discussions. The project team continues engaging other lenders and export credit agencies to complete the financing structure.