Argentina LNG submits RIGI bid for 51bn dollar gas export scheme

Argentina LNG has formally applied to join Argentina’s Large Investment Incentive Regime, known as RIGI, to support the development of an integrated liquefied natural gas project. The venture, valued at 51 billion dollars over its lifetime, is situated offshore Rio Negro in the Gulf of San Matias. This application marks a significant procedural step in the project’s progression and positions it as the largest private investment in the country’s history. It is also the most substantial proposal submitted under the RIGI framework to date.

The project is sponsored by Argentina’s state-owned YPF, Italy-based Eni, and XRG, the international investment arm of ADNOC. Its primary objective is to transform natural gas resources from the Vaca Muerta formation into LNG for export. The scope of work encompasses gas production in Neuquen, the construction of transportation infrastructure, processing plants, and facilities for liquid separation. Additionally, the plan includes two floating liquefied natural gas units with a combined capacity of 12 million tonnes per annum. Horacio Marin, chairman and CEO of YPF, described the move as a fundamental step toward advancing a project that will open a new chapter for Argentina as a global energy exporter, citing job creation and technological development as key benefits.

The RIGI regime offers legal, fiscal, customs, and foreign-exchange stability, conditions deemed essential for attracting the necessary international financing. The project is expected to generate approximately 10 billion dollars in export revenues annually over a 20-year period. Investment is projected to reach 29 billion dollars by 2031, the anticipated start-up year for the FLNG units. Within this phase, 24 billion dollars would be directed towards infrastructure, including industrial complexes and port facilities, while around 5 billion dollars is allocated for upstream field development and drilling. Construction activity from 2026 to 2030 is expected to create around 20,000 jobs annually, with the workforce potentially peaking at 40,000 in the third year. The application is viewed as a step towards a final investment decision by the end of 2026.