Argentina LNG Seeks Government Incentives

The Argentina LNG consortium has filed an application for the government's Large Investment Incentive Regime (RIGI), co-owner Eni SpA said Friday.

RIGI, passed 2024, offers tax, customs and exchange benefits for various sectors including oil and gas, mining, steel, infrastructure and tourism. These benefits are guaranteed for 30 years, during which later more restrictive regulations cannot undo them, according to the government of President Javier Milei. In the oil and gas sector, RIGI includes export production projects with at least $600 million in investment.

Argentina LNG is "a large-scale LNG export project leveraging the resources of the Vaca Muerta formation", Italy's state-backed Eni said in a press release Friday.

"The submission of the RIGI application represents an important milestone toward the project’s Final Investment Decision, which is targeted by the end of 2026", Eni added.

Eni is pursuing the project alongside state-controlled YPF SA and Abu Dhabi National Oil Co PJSC's international investment arm, XRG PJSC.

On February 12 the partners announced a "joint development agreement" for Argentina LNG that consists of two floating liquefaction facilities with a combined capacity of 12 million metric tons per annum (MMtpa).

Later Eni and XRG signed agreements to each acquire a 32 percent ownership in three blocks in the Vaca Muerta gas shale. YPF, which has assumed full ownership of the Aguada Villanueva, Las Tacanas and Meseta Buena Esperanza blocks after a swap transaction with Pluspetrol earlier in 2026, retains a 36 percent operating stake.

"The upstream assets are expected to supply the gas volumes needed to feed floating LNG units, while also supporting the monetization of condensates associated with gas production", XRG said in an online statement June 29.

"For XRG, the proposed investment supports its strategy to build a resilient global gas and LNG platform by securing upstream participation in one of the world's most significant unconventional gas basins and developing its role in a major new LNG export opportunity designed to connect Vaca Muerta's gas resources with global markets", XRG added.

XRG aims to build a top-five integrated gas and LNG business with a capacity of 20-25 million MMtpa by 2035, as announced by the company June 3, 2025. ADNOC launched XRG late 2024 to lead the United Arab Emirates' expansion in the natural gas, low-carbon energy and chemical markets.

To contact the author, email jov.onsat@rigzone.com