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YPF, Eni, XRG-Backed Argentina LNG Seeks Approval for $51 Billion Vaca Muerta LNG Project

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Argentina LNG, a project promoted by energy majors YPF and Eni (E) and Adnoc's XRG, has applied to join Argentina's Large Investment Incentive Regime or RIGI to support its integrated liquefied natural gas production and export project.

The roughly $51 billion project is Argentina's largest ever private undertaking and also the largest project submitted under the RIGI framework so far, YPF said in a statement on Thursday.

The project intends to convert Vaca Muerta gas resources into LNG for global markets, with gas production in Neuquen, dedicated transportation infrastructure and processing facilities, and liquids fractionation trains.

It will feature two floating LNG units with 12 metric tonnes per annum capacity operating offshore Rio Negro in the Gulf of San Matias, the statement said.

The project is expected to generate about $10 billion in export revenue annually for 20 years.

Argentina LNG plans to invest $51 billion over the project's lifetime, including $29 billion by 2031, when the two FLNG units are expected to commence operations. About $24 billion of that amount is to be allocated for the development of strategic infrastructure and $5 billion for upstream development and drilling.

A significant part of the investment during the construction phase is expected to be supported by project finance secured from international markets and by long-term export agreements with international buyers, the statement said.

"The submission of the RIGI application represents an important milestone toward the project's Final Investment Decision (FID), which is targeted by the end of 2026," Eni said in a separate statement.

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