JPMorgan Chase & Co. and Banco Santander SA will lead financing for a $24 billion liquefied natural gas project in Argentina, according to people familiar with the matter.
The venture, led by state-run YPF SA alongside Italy’s Eni SpA and Abu Dhabi’s XRG, has secured commitments for $14 billion to $15 billion from the two banks to support the development of a floating LNG terminal on Argentina’s Atlantic coast. The facility is designed to produce 12 million tons of LNG annually, making it one of the largest floating facilities globally.
The project encompasses two floating liquefaction vessels, two cross-country pipelines, and a natural gas liquids plant. Partners aim to reach a final investment decision by late November, with the total estimated cost exceeding the Argentine government’s $20 billion agreement with the International Monetary Fund.
YPF, Eni, and XRG hold roughly equal equity stakes in the venture. While JPMorgan and Santander lead the financing arrangement, talks with additional lenders, including export credit agencies, are ongoing to complete the funding package.
The project targets Argentina’s vast shale gas reserves, positioning the country to become a significant LNG exporter. The floating terminal’s scale and scope underscore the strategic importance of monetizing domestic energy resources amid global supply dynamics.
