ATLANTA, GEORGIA (By Chad Archey, Energy Analytics Institute, 11.Apr.2025, Words: 355) — The Río Negro-based 28 million tonnes per annum (MTPA) Argentina LNG project, which will consist of Argentina LNG 1, Argentina LNG 2 and Argentina LNG 3, boasts potential offtake of around 50 MTPA.
This, based on initial preliminary discussions under negotiation, according to YPF SA CEO Horacio Marín.
Argentina LNG will consist of a tolling system scheme for ARG LNG 1 and new build schemes for ARG 2 and ARG 3, Marín said on 11 Apr. 2025 in New York City during YPF’s annual Investor Relations or IR Day.
“The first stage [or ARG LNG 1] is a tolling fee [agreement]. We don’t need investment outside of upstream,” Marín said.
Regarding Argentina ARG LNG 2 and ARG LNG 3, Marín said financing was needed. “LNG is financial driven, and we are going to invest in Argentina LNG and make Argentina LNG happen if there is project finance,” he said.
Notably, the 28 MTPA figure is the mid-point of the 26-30 MTPA range recently floated by Marín and other YPF officials during CERAWeek by S&P Global in Houston.
“There are 5 fundamentals in LNG. The first is the law, RIGI. Without RIGI there is no LNG. Now we have RIGI, which is very important for stability, for investment, for everything. There are also incentives for income taxes, there is legal stability. We have super major partners and first class off-takers while we have quality acres in the Vaca Muerta, competitiveness and materiality. The [latter 2 LNG] projects will count on 70% of project finance,” Marín said.
ARG LNG 1
ARG LNG 1 will have a capacity of around 6 MTPA between 2027-2028. The project will include 2 floating units and a new dedicated natural gas pipeline.
The commercial operation date (COD) is slated for 2027, according to Marín.
ARG LNG 2
ARG LNG 2 will have a capacity of around 10 MTPA between 2029-2030. The project will include Shell plc as a strategic partner and 2 super majors as potential off-takers. Of which, 2 own floating liquefied natural gas or FLNGs, while 1 owns a dedicated 580km gas export pipeline.
The 2 FLNGs will be near-shore and have a capacity of 5 MTPA each. There will be no tolling, the executive said.
The expected capital expenditures are between $10bn-$12bn, excluding upstream facilities and wells. The Capex will be covered through project financing, according to Marín.
A final investment decision (FID) for ARG LNG 2 is expected in mid-2026 and YPF looks to have a 30%-35% interest in the project.
ARG LNG 3
ARG LNG 3 will have a capacity of around 12 MTPA between 2028-2029. The project will include 1 super major as its strategic partner and 3 super majors, among others, as potential off-takers.
The project will be a combination of onshore and FLNG. Regarding the latter, there will be 2 FLNGs that will be owned and 1 dedicated gas pipeline, the same one mentioned in ARG LNG 2.
YPF looks to have a 25% interest in the project.
“Financing could be an issue. I can’t guarantee that you will give us money,” Marín said responding to a question on headwinds related to moving forward Argentina LNG 2 and Argentina LNG 3.
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By Chad Archey reporting from Atlanta. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
