Argentina LNG applies for RIGI approval
Published by Jessica Casey,
Editor
LNG Industry,
Argentina LNG has submitted its application to join Argentina’s Large Investment Incentive Regime (RIGI) for the development of its integrated LNG production and export project, with a total investment of US$51 billions throughout the life of the project. This represents the largest private investment in Argentina’s history and the largest project submitted under the RIGI framework to date.
The project, promoted by YPF, Eni, and XRG, involves the development of an integrated value chain that will transform Vaca Muerta’s natural gas resources into LNG exports for international markets. Its design includes rich gas production in Neuquén, dedicated transportation infrastructure, processing facilities, liquids fractionation trains, and two floating LNG (FLNG) units, with a combined capacity of 12 million tpy, which will operate offshore Río Negro in the Gulf of San Matías.
Horacio Marín, Chairman and CEO of YPF, stated: “Joining the RIGI framework is a fundamental step toward advancing a project that will open a new chapter for Argentina as a global energy exporter. We are talking about a growth platform that will generate jobs, technological development, opportunities for local suppliers, and an unprecedented level of international integration for our country.”
The application for RIGI approval represents a key milestone in the development of Argentina LNG. The regime provides a long-term framework of legal, fiscal, customs and foreign exchange stability that is fundamental to enabling large scale, capital-intensive, exportoriented energy infrastructure projects. These conditions are essential for attracting investment and long-term international financing required to execute initiatives of this nature.
The project is expected to generate export revenues of approximately US$10 billion/y over a period of two decades, making a significant contribution to Argentina’s trade balance and foreign currency inflows.
The investment plan contemplates total expenditures of US$51 billion throughout the life of the project. By 2031, the expected start-up date of the two FLNG units, investment is expected to reach approximately US$29 billion. Of that amount, around US$24 billion will be allocated to the development of strategic infrastructure, including industrial complexes, dedicated pipelines, port facilities, and the two FLNG units, while approximately US$5 billion will be invested in upstream development and the drilling of the wells required to achieve the production levels needed to fully supply both liquefaction units. During the project’s construction phase, a substantial portion of the investment will be financed through a Project Finance structure sourced from international markets, one of the most widely used solutions worldwide for large scale energy infrastructure projects. This financing will be supported by long-term export agreements with international buyers holding investment-grade credit ratings.
Read the article online at: https://www.lngindustry.com/floating-lng/14082026/argentina-lng-applies-for-rigi-approval/
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