Argentina’s YPF seeks RIGI investment scheme for $51 billion LNG project

Aug 13 (Reuters) – Argentina LNG on Thursday submitted an application to participate in the country’s investment ​scheme to develop its integrated liquefied natural ‌gas (LNG) project with a total investment of $51 billion, state oil firm YPF said in a statement.

The project is ​backed by YPF along with energy firms ​Eni and XRG, and seeks to develop ⁠the country’s Vaca Muerta shale formation into ​LNG exports for the international market, the statement ​said.

• The investment plan calls for an investment of $29 billion by start-up in 2031.
• The project is geared at transforming Vaca ​Muerta’s natural gas resources into LNG exports ​using two floating liquefaction units with 12 million tonnes per ‌year ⁠capacity offshore Río Negro.
• YPF said the project is expected to generate $10 billion in annual export revenues over two decades.
• YPF in May said the company ​applied for ​a $25 billion ⁠oil project aimed at accelerating development of the Vaca Muerta shale formation.
• The ​Vaca Muerta shale play is a ​cornerstone ⁠of President Javier Milei’s economic strategy, which seeks to boost Argentina’s financial stability through increased energy ⁠exports.
• The ​Incentive Regime for Large Investments (RIGI), ​launched under Milei, is aimed at boosting investment in key sectors.