Argentina LNG seeks RIGI approval for $51B LNG investment

Argentina LNG has submitted an application to join the Incentive Regime for Large Investments (RIGI) for the development of its integrated liquefied natural gas (LNG) production and export project, involving a cumulative investment of $51 billion over the life of the project. RIGI provides a long-term framework of legal, tax, customs and foreign-exchange stability, which is considered essential for large-scale, capital-intensive energy infrastructure projects focused on exports.

The project, led by YPF, Eni and XRG, would be the largest private investment in Argentina’s history and the largest investment under the RIGI program to date, the announcement stated. 

“Joining the RIGI is a fundamental step toward advancing a project that will open a new chapter for Argentina as a global energy exporter,” said Horacio Marín, president and CEO of YPF. “We are talking about a growth platform that will create jobs, foster technological development, support local suppliers and establish an unprecedented international presence for our country.”

The project scope involves development of an integrated value chain that will transform natural gas resources from Vaca Muerta into LNG exports for international markets. It includes rich-gas production in Neuquén, dedicated transportation infrastructure, processing plants, liquids fractionation trains and two floating liquefaction units (FLNGs), with a combined capacity of 12 million metric tons per year (MTPA). The FLNG units will operate offshore Río Negro in the Gulf of San Matías. Construction is scheduled to take place between 2026 and 2030.

Through 2031, when the two FLNG units are expected to begin operations, the investment is estimated at approximately $29 billion. Of that amount, about $24 billion will be allocated to strategic infrastructure, including industrial facilities, dedicated pipelines, port infrastructure and the two FLNG units. Approximately $5 billion will be invested in upstream development and drilling the wells needed to supply both liquefaction units at full capacity.

The project is expected to generate approximately $10 billion in annual export revenues for two decades.