Argentina's ambitious liquefied natural gas export project secured up to $7 billion in US backing Wednesday, marking Washington's most substantial energy commitment to South America's second-largest economy as it races to monetize the Vaca Muerta shale formation.
Foreign Minister Pablo Quirno and US Deputy Secretary of State Christopher Landau presented the financing package at Argentina's consulate in New York on the sidelines of the United Nations General Assembly. The structure relies on US export credit and private investors rather than direct sovereign lending, a model that shifts risk away from American taxpayers while unlocking Argentine energy reserves.
The Deal Structure
The US Export-Import Bank plans up to $7 billion for Argentine minerals and energy projects, with about $6 billion tied specifically to Argentina LNG, the joint venture between YPF, Italy's Eni, and the Emirati firm XRG. These figures aren't rival versions of the same number but measure different things, according to reports. The instruments include loans, guarantees and insurance alongside private capital, with the US International Development Finance Corporation also contemplated in the structure.
Argentina LNG sits at the center of the gas side. YPF holds 36 percent, with Italy's Eni and XRG each controlling 32 percent. The partners applied under RIGI, Argentina's incentive regime for large investments, citing about $51 billion over the project's life. La Nación reported that about $29 billion of that falls before 2031.
Export Infrastructure
The design uses two floating liquefaction units in the San Matías Gulf, off Río Negro province, with combined capacity of about 12 million tonnes annually and room to reach 18 million. Vaca Muerta, the shale formation in Neuquén province, would supply the gas. YPF chief executive Horacio Marín said on September 18 that the company was deep in talks with export credit agencies and named Europe, Asia and the United States.
Congressional Roadblock
Washington and Buenos Aires signed an agreement on reciprocal trade and investment in February 2026, but Argentina's Congress hasn't ratified it. Ambassador Jamieson Greer signed for the United States. Argentine officials say they don't yet have the votes.
The final signed amount isn't known, nor the split between EXIM, the DFC and private lenders. No drawdown schedule has been published. The package covers energy, critical minerals and export infrastructure, representing a market-driven approach to hemispheric energy development that doesn't require American taxpayers to shoulder the full burden.
Why This Matters:
This financing structure demonstrates how export credit agencies can catalyze private investment in emerging markets without exposing US taxpayers to direct sovereign debt risk. Argentina's vast Vaca Muerta reserves remain largely untapped due to infrastructure constraints and political instability. If the project reaches its 18 million tonne capacity, it'll position Argentina as a significant LNG exporter, potentially diversifying global energy markets and reducing European dependence on Russian gas. The congressional holdup on the reciprocal trade agreement, however, reveals the political fragility that's plagued Argentine economic policy for decades. Without ratification, the full framework for protecting American investors remains incomplete, potentially complicating future drawdowns and raising questions about whether Buenos Aires can maintain the policy consistency required for multi-decade energy infrastructure investments.