A consortium consisting of Argentina’s state energy company YPF, Italy’s Eni and Abu Dhabi’s XRG has filed for inclusion under Argentina’s RIGI (Regimen de Incentivo para Grandes Inversiones) large-investment incentive regime for an LNG project with total costs of approximately $51 billion involving two floating LNG (FLNG) units, industry publication Hydrocarbon Processing reported on August 17. The project, which would use two FLNG units stationed offshore near Rio Negro to liquefy and export gas produced from the Vaca Muerta shale gas field, targets startup in 2031, it is reported.
The project is reported to involve transporting gas produced at Argentina’s largest shale gas field, Vaca Muerta, via pipeline to the coast, where it would be liquefied for export at two FLNG units stationed offshore near Rio Negro. The consortium is reportedly aiming, through this RIGI filing, to secure tax and other investment incentives and reach a Final Investment Decision (FID) by year-end.
Total lifecycle investment is reported at approximately $51 billion, with the two FLNG units’ combined liquefaction capacity confirmed at 12 million tonnes per year. Expected annual export revenue over 20 years of operation is approximately $10 billion, with startup targeted for 2031. Employment during construction is reported at an average of 20,000 workers, peaking at 40,000.
Argentina has introduced large-scale investment incentive programs such as RIGI to attract foreign investment aimed at converting the massive reserves of the Vaca Muerta shale gas field into exports. This project is reported to be the largest private energy investment in Argentina’s history, pursued under this policy framework.
Countries with abundant shale gas reserves are increasingly using FLNG rather than pipelines to rapidly build export infrastructure. This can be seen as a strategy to accelerate entry into export markets while reducing the permitting and site-acquisition burdens associated with building onshore terminals.
Key points to watch include whether a Final Investment Decision (FID) is reached by year- end and the outcome of the RIGI inclusion approval.