U.S. to Back Argentina’s First LNG Export Project With $6 Billion Loan

The U.S. government is ready to support Argentina’s key LNG project by lending up to $6 billion to the project led by Argentina’s energy group YPF in partnership with Italy’s Eni and Emirati energy firm XRG.

As part of a newly launched Andes-Atlantic Corridor, a joint U.S-Argentinian initiative to strengthen and modernize the infrastructure, U.S. government financing agencies can play a role in financing for Corridor projects alongside the private sector, the U.S. Department of State said.

In the energy infrastructure space, the U.S. government’s Export-Import Bank of the United States (EXIM) has issued a non-binding indicative term sheet up to $6 billion for the $51-billion Argentina LNG project, the State Department said, in a win for Argentinian President Javier Milei, who wants to attract foreign investment in infrastructure.

The proposed financing from EXIM is intended to support the procurement of U.S. goods and services required for infrastructure development and production activities, including the contract awarded to McDermott for the engineering, procurement, construction, and commissioning of a natural gas liquids fractionation and gas treatment facility.

In addition, U.S. firm Pumpco, a MasTec, Inc. subsidiary, in partnership with Bonatti and Contreras Hnos., has been awarded an Engineering, Procurement, and Construction contract worth more than $1 billion for the project’s export pipeline system, subject to final investment decision.

The partners in the Argentina LNG project last month applied to join Argentina’s Large Investment Incentive Regime, RIGI, which would support the development of the large-scale LNG export project that will use Vaca Muerta’s huge shale gas resources.

The project aims to develop an integrated LNG value chain, from upstream gas production to export infrastructure, including gas transportation and processing facilities, and two Floating Liquefied Natural Gas (FLNG) units with a combined liquefaction capacity of 12 million tonnes per year (MTPA), to be located offshore Río Negro province.

Source: Oilprice