JPMorgan Chase & Co. and Banco Santander SA are leading a $14 billion to $15 billion financing package for a liquefied natural gas (LNG) project in Argentina, according to sources cited by Bloomberg.
The venture, led by state-run YPF SA, Italy's Eni SpA, and Abu Dhabi's XRG, aims to develop an offshore LNG terminal on Argentina's Atlantic coast. The project includes two floating liquefaction vessels, two cross-country pipelines, and a natural gas liquids plant, with an estimated total cost of $24 billion.
The financing arrangement, spearheaded by JPMorgan and Santander, exceeds the Argentine government's $20 billion agreement with the International Monetary Fund. The project's production capacity is slated at 12 million tons per year, positioning it among the world's largest floating LNG facilities upon completion.
The three energy firms hold roughly equal equity stakes in the venture. Final investment decisions are targeted for late November, with the lead banks continuing talks with additional lenders, including export credit agencies, to secure the remaining funding.
The initiative seeks to monetize Argentina's substantial shale gas reserves by liquefying and exporting the resource, enhancing the country's role in global energy markets.
