Argentina LNG partners are targeting Nov. 26 for a final investment decision (FID) on the 12-million-tonne/year (tpy) development, YPF SA president and chief executive officer Horacio Marín said on X during Argentina Week in Paris Oct. 1.

To be developed by partners YPF, Eni SPA, and XRG, Argentina LNG would process natural gas from the Vaca Muerta shale play in Neuquén province through two 6 million tpy floating LNG (FLNG) units offshore Río Negro province. The partners envisage subsequent expansion to 18 million tpy. Startup is targeted for 2031.

The project includes two parallel pipelines extending about 527 km from the Vaca Muerta production area to Sierra Grande, Río Negro: a 48-in. natural gas pipeline and a 24-in. liquids pipeline.

A consortium of Pumpco, Bonatti, and Contreras Hermanos has been awarded the construction contract, valued at more than $1 billion, subject to FID.

YPF plans to hold a reverse auction for pipe procurement Oct. 20, with the award expected before the investment decision. Gas pipeline construction could begin in February 2027 if FID proceeds as scheduled, Marín said.

The US Export-Import Bank has issued a non-binding financing proposal of up to $6 billion for the project, subject to board approval, which is expected in 2027.

The project partners also have applied for inclusion in Argentina’s Large Investment Incentive Regime (RIGI), which provides long-term tax, customs, and foreign-exchange incentives for qualifying developments.

The partners estimate investment of about $29 billion through the initial development phase and about $51 billion over the project’s life. LNG exports are projected to generate about $10 billion/year at full operation.

In June, the partners agreed on an upstream ownership structure, subject to regulatory approval. Eni and XRG will each hold 32% of Vaca Muerta blocks Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas, which would supply the FLNG units. YPF would retain 36%.