Argentina and the United States are set to announce a major financing package for natural gas exports on Wednesday, channeling billions in public credit guarantees toward a project that'll extract shale gas from Patagonia and ship it to global markets. Foreign Minister Pablo Quirno and US Deputy Secretary of State Christopher Landau are expected to present the deal at Argentina's consulate in New York during the United Nations General Assembly.
The arrangement centers on Argentina LNG, a joint venture between state oil company YPF, Italy's Eni, and Emirati firm XRG. About $6 billion in financing is tied to the project, which would use two floating liquefaction units in the San Matías Gulf off Río Negro province. Combined capacity would reach about 12 million tonnes a year, with room to expand to 18 million.
Public Credit Backing Private Extraction
The US Export-Import Bank plans up to $7 billion for Argentine minerals and energy projects overall, with the $6 billion Argentina LNG figure representing a separate calculation tied specifically to the gas venture. The structure relies on loans, guarantees and insurance rather than direct sovereign lending, and also involves the US International Development Finance Corporation. Private capital is expected to fill out the rest.
YPF holds 36 percent of Argentina LNG, with Eni and XRG each holding 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.
YPF chief executive Horacio Marín said on 18 September that the company was deep in talks with export credit agencies and named Europe, Asia and the United States. The gas would come from Vaca Muerta, the shale formation in Neuquén province that's become the centerpiece of Argentina's fossil fuel expansion.
Trade Deal Still Stalled in Congress
The financing announcement comes as a broader economic agreement between Washington and Buenos Aires remains unratified. In February 2026 the two governments signed an agreement on reciprocal trade and investment, with Ambassador Jamieson Greer signing for the United States. Argentine officials say they don't yet have the votes in Congress to ratify it.
The final signed amount isn't known, nor is the split between EXIM, the DFC and private lenders. No drawdown schedule has been published. The deal represents a bet that global demand for liquefied natural gas will remain strong enough to justify the infrastructure investment, even as climate commitments push other nations toward renewable energy.
Why This Matters:
This financing package locks Argentina into decades of fossil fuel dependence at a moment when the global energy transition demands rapid movement away from gas and oil. Public export credit agencies in the United States are effectively subsidizing private extraction in Patagonia, socializing the risk while profits flow to YPF's partners and international investors. The $29 billion in spending before 2031 will shape Argentina's energy system for a generation, and the decision to anchor that system in shale gas extraction carries long-term consequences for climate commitments and economic flexibility. The stalled trade agreement in Argentina's Congress suggests domestic political resistance to the broader economic framework that underlies these deals, raising questions about whether public support exists for the direction being set by energy executives and foreign creditors.