The total investment for the project is estimated at $30 billion, split between $10 billion directed toward upstream gas development—mainly exploiting the Vaca Muerta shale formation—and $20 billion for midstream infrastructure, including pipelines, liquefaction facilities, and LNG carriers. JP Morgan is advising the consortium on project finance structuring, expecting to secure approximately 70% of the $20 billion midstream financing through international banks and development institutions. Formal tenders for gas pipelines and LNG vessel construction are scheduled to begin as early as April, with contract awards anticipated before the FID deadline around October.
Geographically, the export terminal on Argentina’s Atlantic coast in Río Negro offers logistical advantages owing to dual-ocean access and a strategic distance from global conflict zones. This geographic positioning, combined with robust economic assumptions and Argentina’s RIGI regulatory framework, reinforces the project’s attractiveness to credit providers and buyers from developed countries seeking secure LNG supply chains. Amid global energy volatility and supply disruptions—exemplified by outages in Qatari facilities—the Argentina LNG project is poised to enhance the region’s energy export profile and integrate Argentina more firmly into global LNG markets.
This article was curated and published as part of our South American energy market coverage.
