The Export-Import Bank of the United States (US Exim) has proposed long-term financing of up to 6 billion dollars (5.277 billion euros) to support the development of Argentina LNG, considered the largest gas project in the history of the South American country.
According to the Argentine state oil company YPF in a statement, the objective of these resources would be to cover the purchase of goods and services of U.S. origin intended for the construction and production phases of the project. However, the financing package still needs to receive approval from the governing board of the agency.
Argentina LNG is promoted by YPF, the Italian Eni, and XRG, the international subsidiary of the Emirati Adnoc, with the goal of establishing an integrated chain for the extraction and marketing of natural gas from Vaca Muerta. The resource will be processed, liquefied, and sent to different destinations in global markets.
The program includes the startup of gas production facilities in the province of Neuquén, as well as logistical works, treatment plants, and two floating liquefaction units (FLNG) that will operate off the coast of Río Negro, in the Gulf of San Matías.
The FLNGs planned for the first stage will have a combined capacity of 12 million tons per year (MTPA) of liquefied natural gas (LNG), which, according to YPF, would place Argentina among the leading emerging exporters of this fuel.
Despite the support from US Exim, the public company has emphasized that Argentina LNG will require a total investment of 51 billion dollars (44.857 billion euros) over its entire life cycle. The commissioning of the two FLNGs is estimated for 2031, by which time the project will have already required 29 billion dollars (25.507 billion euros) in accumulated financing.
Of that amount, around 24 billion dollars (21.109 billion euros) will be allocated to the construction of pipelines, port terminals, processing plants, and liquefaction equipment, while the remaining 5 billion dollars (4.398 billion euros) will be directed towards the development of the gas resources necessary to supply the complex.