JP Morgan and Santander Lead Financing Charge for Argentina's $24 Billion LNG Project

JPMorgan Chase and Banco Santander are leading the charge to finance Argentina's massive LNG export project, worth around $24 billion. The banks are lining up a financing package of $14-15 billion for YPF, Argentina's state-controlled oil and gas company, which is working with Eni and XRG on the project.

The plan involves floating liquefaction vessels to chill gas into liquid for transport, new pipelines, and a plant to separate valuable liquids from the gas stream. The group aims to make a final investment decision by late November, which will unlock committed spending and long-term contracts.

If banks and official lenders sign on, it suggests that the project can be structured to rely mostly on contracted export cashflows rather than Argentina's day-to-day politics. This is a significant test for Argentina's ability to finance dollar-earning exports, and if successful, could improve how investors price YPF's access to foreign funding.