U.S. Export-Import Bank offers $6 billion in financing for Argentina’s $51 billion LNG project led by YPF, Eni, and XRG
The U.S. Export-Import Bank has issued a non-binding indicative term sheet offering up to $6 billion in potential financing for Argentina’s LNG project led by YPF, Italy’s Eni, and the Emirati firm XRG. The announcement came under the newly launched Andes-Atlantic Corridor, a joint U.S.-Argentina initiative aimed at modernizing infrastructure across the region.
The $6 billion offer is designed to support the procurement of U.S. goods and services for what’s shaping up to be one of the largest energy projects in Latin America.
U.S. commits up to $6 billion for Argentina LNG development
The EXIM term sheet is non-binding, but it still means something. It lays out a clear framework for how U.S. government money could flow into the project — covering both its development and production phases.
The project’s resource base is Vaca Muerta — the massive shale formation in Patagonia sitting on some of the world’s largest unconventional gas reserves.
The Andes-Atlantic Corridor is brand new. Washington and Buenos Aires launched it together with a stated goal of modernizing shared infrastructure, and under that umbrella, U.S. government agencies are positioned to co-fund the project alongside private partners, according to the U.S. Department of State.
EXIM financing is specifically structured around American goods and services — meaning U.S. companies supplying equipment, technology, or construction work could benefit directly. It’s as much a trade policy move as an energy investment.
Why the U.S. is backing Argentine energy infrastructure
The Andes-Atlantic Corridor gives all of this a broader context. This isn’t just about one LNG terminal — it’s part of a wider push to deepen U.S.-Argentina economic ties through joint infrastructure development, and EXIM’s role fits neatly into that picture.
The bank exists to support U.S. exporters. A $51 billion energy megaproject in South America represents a significant opportunity for American companies to win contracts, and by backing the project financially, EXIM helps those firms compete for that business.
One major contract is already done. McDermott landed the engineering, procurement, construction, and commissioning work for a gas treatment and liquids fractionation facility — exactly the kind of U.S.-linked work the EXIM financing is designed to encourage.
A second major contract, worth more than $1 billion, went to a consortium including Pumpco — a MasTec subsidiary — along with Bonatti and Contreras Hnos., covering the export pipeline system. It’s contingent on a final investment decision, though, which the partners are still working toward.
Scale and structure of the $51 billion LNG project
The numbers are hard to ignore. At $51 billion, this ranks among the largest energy investment proposals in Latin American history. YPF, Argentina’s state-controlled oil company, is leading it alongside Italy’s Eni and XRG, an energy firm from the UAE.
The project’s resource base is Vaca Muerta — the massive shale formation in Patagonia sitting on some of the world’s largest unconventional gas reserves. Argentina has long wanted to monetize those reserves through LNG exports, and this project is the most ambitious attempt yet.
Two Floating LNG units deployed offshore Río Negro province form the core of the production plan. Together, they’d carry a combined export capacity of 13.2 million tons per year — enough to make Argentina a genuine player in global LNG markets.
To help unlock that investment, the YPF-led consortium has applied to Argentina’s Large Investment Incentive Regime, known by its Spanish acronym RIGI, which is designed to attract large-scale foreign capital by offering legal and fiscal stability guarantees to qualifying projects.
Timeline and next steps toward a final investment decision
Despite all the momentum, the project hasn’t cleared its most critical hurdle. The partners are targeting a final investment decision by the end of 2026, and until that happens, several key contracts — including the $1 billion-plus pipeline deal — remain contingent.
That timeline matters more than it might seem. The EXIM term sheet, the pipeline contract, and the RIGI application are all pieces being assembled ahead of that decision. They show serious forward motion, but this isn’t a done deal.
Argentina’s RIGI framework sits at the center of the government’s pitch to foreign investors. By offering a dedicated legal structure for large investments, Buenos Aires is trying to reduce the regulatory and financial uncertainty that has historically made major projects in the country difficult to close. It’s a structural bet that stable rules will do what incentives alone can’t.
The project’s ultimate goal is a fully integrated value chain — from Vaca Muerta’s wellheads through export pipelines and gas treatment facilities, out to floating LNG terminals shipping product to international markets. That kind of end-to-end infrastructure takes years to build and requires everything to go right.
A final investment decision expected by the end of 2026
Here’s where things stand: the U.S. Export-Import Bank has issued a non-binding $6 billion financing offer for Argentina’s LNG project under the Andes-Atlantic Corridor initiative. The project is valued at $51 billion and led by YPF alongside Eni and XRG, targeting Vaca Muerta’s shale gas reserves. Two floating LNG units with a combined 13.2 million tons per year of capacity are planned offshore Río Negro province. Major contracts have gone to McDermott and a pipeline consortium — though the latter depends on a final investment decision expected by the end of 2026. The consortium has also applied to Argentina’s RIGI investment incentive regime to help get the deal across the line.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
