YPF Secures LNG Buyers Ahead of Vaca Muerta Investment Vote

Argentina’s YPF is trying to sell part of its future gas output before committing billions of dollars to the infrastructure needed to export it. Chief Executive Horacio Marín said the company expects to sign two or three LNG sales contracts covering between 500,000 and 1.5 million metric tons per year each.

The agreements are intended to be in place before partners take a final investment decision in November. YPF has not disclosed the buyers, but the contracts would give lenders greater visibility into future cash flow, a critical requirement for a project built around long-dated, capital-intensive assets.

The Argentina LNG development is backed by YPF, Italy’s Eni and Abu Dhabi-based XRG. The initial phase is designed to use two floating liquefaction units with combined capacity of 12 million tons per year, with room to expand to 18 million tons. Gas would travel roughly 527 kilometers from the Vaca Muerta shale formation in Neuquén to export facilities off Río Negro’s Atlantic coast.

The $24 billion figure attached to the project reflects the development now moving toward a financing decision, while YPF’s broader Argentina LNG plan has been presented as a much larger, roughly $51 billion investment when upstream drilling and later expansion phases are included. The distinction matters: the project is not simply a pair of floating plants, but an integrated chain linking wells, pipelines, gas treatment, liquids handling and maritime exports.

YPF, Eni and XRG have applied for Argentina’s RIGI investment-incentive regime, which offers tax and regulatory advantages for large projects. YPF’s upstream stake is about 36%, while Eni and XRG each hold roughly 32% in the blocks intended to supply the development. The partners are also expected to act as offtakers for part of the production, leaving the newly negotiated contracts to cover additional volumes.

Financing work is moving in parallel. According to Argentine reporting, 47 international banks submitted proposals for an initial stage estimated at $15.5 billion, with offers exceeding the required amount. JPMorgan and Santander are leading the financing structure.

The commercial push arrives as LNG buyers seek supply diversification after disruptions around the Persian Gulf and Strait of Hormuz. That backdrop improves Argentina’s pitch, but the decisive test will be whether contracted volumes, financing and infrastructure can align before the November vote.