YPF Lines Up Buyers for $24 Billion Vaca Muerta LNG Project

YPF Lines Up Buyers for $24 Billion Vaca Muerta LNG Project

Mon, September 14, 2026 at 6:47 PM GMT+3 2 min read

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Argentina's state-controlled energy company YPF is close to signing several LNG sales agreements for its planned Argentina LNG project as it races toward a final investment decision later this year.

YPF CEO Horacio Marín said at the Gastech conference in Bangkok that the company expects to sign two or three LNG contracts covering between 0.5 million and 1.5 million tonnes per year each. YPF aims to have the agreements secured before partners make a final investment decision in November.

The $24-billion Argentina LNG development, backed by YPF, Italy's Eni and Abu Dhabi's XRG, is designed to turn the vast Vaca Muerta shale formation into a major source of LNG for international markets.

The initial development will feature two floating LNG facilities with combined capacity of 12 million tonnes per year, with potential expansion to 18 million tonnes. A dedicated 527-kilometer pipeline will transport gas from Vaca Muerta to the Atlantic coast in Río Negro province. YPF says the development will also include gas treatment and liquids infrastructure.

Eni and XRG each hold approximately 32% interests in the upstream blocks feeding the development, with YPF holding 36%.

Securing long-term buyers is crucial for financing large LNG developments. Marín acknowledged that the project's financing package is unlikely to be completely finalized before the November investment decision, but expects lenders to provide letters of intent.

The timing could prove favorable for Argentina. Months of disruptions to LNG supplies from the Persian Gulf have prompted Asian buyers to look for geographically diversified sources of supply, potentially strengthening the commercial case for Vaca Muerta LNG.

The partners have already applied for Argentina's RIGI investment incentive regime, another major step toward FID

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