JPMorgan Chase (JPM) together with Banco Santander (SAN) are taking the lead on financing for the Argentina LNG project that will handle liquefaction and exports of shale gas, Bloomberg reported Monday, citing sources with knowledge of the matter.
The banks are heading up an effort to form a credit arrangement for between $14 million and $15 billion, according to the sources who asked not to be identified revealing information on the private negotiations.
The banks are talking to other lenders about the South American country's project, which is estimated at a total of $24 billion. This includes export credit agencies, the article said.
Argentina LNG is led by state-run YPF which is partnering with Italy's Eni (E) and Abu Dhani's XRG, with each holding roughly equal stakes, the article said and the offshore LNG terminal they could eventually build, would have capacity to produce about 12 million tons a year.
Santander declined Bloomberg's request for comment while JPMorgan did not immediately reply.has reached out to Santander and JPMorgan seeking comment.
The companies behind the project recently submitted an application for the project to be granted the benefits of Argentina's Large Investment Incentive Regime or RIGI on Aug. 14, based on a statement from YPF.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)