US Export-Import Bank Offers $6 Billion to Back Argentina’s Landmark LNG Project
The US Export-Import Bank (EXIM) has offered up to $6 billion in financing to support Argentina LNG, the YPF-led project that would turn gas from the Vaca Muerta shale formation into the country’s first large-scale liquefied natural gas export business, according to the bank and reporting confirmed by multiple outlets on September 24. The offer does not close the financing; it gives the project’s backers a letter of support to present to lenders as they work toward a final investment decision.
A $51 Billion Project Still Short of FID
Argentina LNG is being developed by YPF, Italy’s Eni and XRG, the international investment arm of Abu Dhabi’s Adnoc. The partners have laid out roughly $51 billion in planned spending over the life of the project, the largest private investment ever proposed under Argentina’s Large Investment Incentive Regime (RIGI). Of that total, about $29 billion is earmarked for the buildout through a planned 2030 start date, including roughly $24 billion for pipelines, gas processing and liquefaction infrastructure.
The design centers on two floating LNG (FLNG) units to be moored offshore Río Negro province in the Gulf of San Matías, with combined liquefaction capacity of 12 million tonnes per annum. Feed gas would come from YPF’s acreage in the Vaca Muerta shale in Neuquén province, carried east by new and expanded pipelines.
YPF chief executive Horacio Marín has said the partners intend to reach a final investment decision in November, though he cautioned that the decision would likely rest on letters of intent from banks and export credit agencies rather than fully committed loans. The EXIM offer is one such letter of support, not a closed loan; a binding credit agreement would still need to follow FID.
Washington’s Bet on the Milei Government
The financing offer lands as the Trump administration has stepped up economic backing for Argentine President Javier Milei, whose government has courted foreign capital for the Vaca Muerta buildout since easing capital controls and passing the RIGI investment law. The State Department has framed US support for Argentina LNG as part of a broader effort to develop transport and energy links between the two countries, with US government financing agencies positioned to back further projects alongside private lenders. The push comes as global LNG buyers watch other supply routes closely, including the Strait of Hormuz, where flows have shaped this year’s trading.
For Argentina, the stakes go beyond a single project. National oil output climbed to roughly 865,000 barrels a day in February, up more than 15% year-on-year, with Vaca Muerta supplying the bulk of the increase, while new pipelines such as the Perito Moreno line and a planned natural gas liquids line near Bahía Blanca are being built to move more gas and crude to export terminals. The government has projected an energy trade surplus of $8.5 billion to $10 billion this year, with officials pointing to $15 billion to $30 billion in annual energy exports by 2030 if projects like Argentina LNG go ahead. A successful ramp-up would give buyers in Europe, still watching why European gas prices have been rising, and in gas-importing markets such as Turkey another long-term supplier to negotiate with.
What Still Has to Happen
Reaching FID will require Argentina LNG’s sponsors to line up the rest of the debt package beyond EXIM’s offer, finalize engineering and construction contracts for the FLNG units, and secure regulatory approvals under RIGI. Any of those steps could push the November target back. If the project does advance, first LNG cargoes from the Gulf of San Matías would not be expected before 2030, putting Argentina LNG on a similar timeline to other FID-stage projects competing for the same pool of global buyers and financiers.
Sources
- Rigzone, “Trump Backs Argentina LNG Project,” Sept. 24, 2026 — EXIM offer, YPF CEO quote, FID timeline
- World Oil, “YPF-led Argentina LNG seeks approval for $51-billion investment,” Aug. 17, 2026 — total project cost, RIGI filing
- Baird Maritime, “YPF, Eni and XRG set sights on $51b Argentina LNG export venture” — project structure, FLNG capacity
- PGJ Online, “Vaca Muerta Pipelines Poised to Push Argentina Energy Surplus Higher in 2026,” Feb. 2026 — oil output, pipeline buildout, trade surplus outlook
Illustrative image. Photo: Virtual-Pano, CC BY-SA 4.0, via Wikimedia Commons — source
