YPF targets November FID for $51 billion Argentina LNG project with 18 MTPA capacity

YPF president Horacio Marín confirmed at Gastech 2026 in Bangkok that the state-controlled oil company expects to sign the final investment decision for Argentina LNG before year-end, with physical works beginning in February 2027. The project represents a $51 billion initiative to transform Vaca Muerta shale gas into liquefied natural gas for export, though industry sources note that figure encompasses multiple expansion phases beyond the initial development.

The ownership structure allocates 36 percent to YPF, with Eni and XRG each holding 32 percent stakes. Initial capacity is set at 12 million tonnes annually through two floating liquefaction units, expanding to 18 million tonnes as the project scales. Eni will supply the world’s largest floating liquefaction vessels, according to Marín, who emphasized that YPF brings Vaca Muerta expertise while Eni contributes LNG technology leadership.

The commercial foundation requires offtake agreements totaling between 0.5 and 1.5 million tonnes per contract. Marín stated the company is close to signing two or three such deals, which would secure buyers for 12.5 to 38 percent of the 12 million tonne initial output. Eni and XRG will purchase additional volumes as project partners and buyers, reinforcing the commercial viability. No contracts have been signed yet, and lenders typically require committed offtake agreements before funding liquefaction facilities.

Infrastructure plans include a 527-kilometer pipeline from Vaca Muerta to the coast at Golfo San Matías in Río Negro province. The project will generate more than 90,000 jobs across Argentina’s energy sector, with nearly half directly linked to the LNG development, though Marín did not specify timelines or regional distribution for hiring.

YPF filed for inclusion under Argentina’s RIGI investment incentive regime in mid-August, securing fiscal stability and regulatory certainty for investors. Marín characterized RIGI approval as essential, stating “without RIGI there is no LNG today.” The regime provides 30-year tax stability alongside reduced bureaucratic requirements, elements the CEO highlighted as critical for attracting international capital.

Financial structuring involves export credit agencies and commercial banks, with letters of intent expected rather than firm commitments before the November decision date. Bloomberg reported the core development cost at $24 billion, distinct from the broader $51 billion program figure that includes subsequent phases. Vaca Muerta accounts for 60 percent of Argentina’s hydrocarbon production, driving infrastructure expansion requirements to evacuate growing output volumes.