JPMorgan and Santander Lead Financing for Argentina's $15B LNG Project

Argentina's LNG project is moving forward with a massive financing arrangement led by JPMorgan Chase & Co and Banco Santander SA. The two banks are spearheading an arrangement of around US$14 billion to US$15 billion for the landmark project, which aims to liquefy and export Argentina's shale gas reserves. The partners on the project, including state-run YPF SA, Italy's Eni SpA, and Abu Dhabi's XRG, hold roughly equal equity stakes.

The offshore LNG terminal on Argentina's Atlantic coast would produce 12 million tons a year, making it one of the biggest so-called floating facilities in the world. The entire project is unprecedented in Argentina with a price tag that surpasses the government's US$20-billion agreement with the International Monetary Fund.

Under President Javier Milei's free-market reforms, project finance has revived Argentina's energy sector as shale drillers and pipeline companies hunt for funding for build-outs. YPF CEO Horacio Marín told analysts earlier this month that all of the Argentina LNG documentation has been prepared for potential lenders to perform due diligence.