The Argentina LNG project, a flagship initiative to liquefy natural gas from the Vaca Muerta shale play using floating LNG (FLNG) units, is advancing toward a final investment decision (FID) targeted for the fourth quarter of 2026. Project partners YPF, Eni, and XRG are initiating project finance, expected to be finalized after May, to prepare for this FID, with the timeline currently on track.

Project Economics and Design

The project's economics are designed for resilience against market volatility. It is structured as a 'dual gas' project, billing for both natural gas and liquids (oil). This dual-revenue stream provides significant leverage against fluctuations in both commodities, positioning Argentina LNG among the top three most profitable projects currently under construction globally.

Infrastructure and Scale

The development plan includes two newbuild FLNG vessels, each with a capacity of 6 million tonnes per annum (tpa). There is an option for a third unit, which could increase the project's total capacity to 18 million tpa. The overall development is valued at $30 billion over a four-year period.

Contracting and Construction Progress

Contracting is progressing, with confidence that all necessary contracts will be finalized within the year. The contracts for the two FLNG vessels are the most advanced. Initial bids have been received for the engineering work. For the vessels, a single tender with specific differences for each unit is under assessment as the preferred, or "ideal," option, though other possibilities remain.

Context of Argentina's LNG Projects

Argentina LNG is one of two major LNG projects in the country. The other project, Southern Energy—owned by Pan American Energy, YPF, Pampa Energia, Harbour Energy, and Golar LNG—is scheduled to achieve first gas in 2027.