Aug 25, 2026｜Source: Bloomberg
JPMorgan Chase & Co. and Banco Santander SA are set to lead a financing package of up to USD 15 billion for Argentina’s landmark Argentina LNG export project, according to people familiar with the matter. The funds will support the development of shale‑gas resources from the country’s world‑renowned Vaca Muerta formation and build out the full liquefaction‑to‑export supply chain, paving Argentina’s way to become a new global LNG supplier.
One of the largest‑ever project‑finance deals in Latin America’s energy sector, the syndicated loan is being marketed to more than 200 financial institutions worldwide, with JPMorgan acting as financial advisor to the project.
Led by Argentina’s state‑owned energy firm YPF, the Argentina LNG initiative counts Italy’s Eni and XRG, the international investment arm of ADNOC, as core partners. The full‑scale project carries an overall investment plan of USD 51 billion, while its first‑phase infrastructure, targeting an annual liquefaction capacity of 12 million tonnes, requires around USD 20 billion in capital expenditure. Roughly 70%‑80% of phase‑one costs will be covered by international debt financing, with the rest funded via equity contributions from project stakeholders.
Backed by Argentina’s RIGI large‑scale investment incentive law, the scheme secures long‑term stability on taxation, foreign‑exchange rules and legal terms. Ranked as the flagship energy project of the Milei administration, it is projected to generate nearly USD 10 billion in annual export revenue for Argentina over 20 years once operational, offering a lasting solution to the nation’s chronic foreign‑currency shortage.
On the global energy market, new LNG supplies from Argentina will diversify Atlantic‑basin gas sources, providing additional procurement options for buyers across Europe and Asia. For the lenders, the deal strengthens JPMorgan’s leading position in global LNG financing and deepens Santander’s footprint in large‑scale South‑American energy transactions.
Industry observers note that the project still faces key milestones including Final Investment Decision (FID), construction of floating liquefaction units and long‑term offtake agreements before commercial output begins.