SEATTLE (Oil Monster): Argentina is moving closer to becoming a major global liquefied natural gas (LNG) supplier. More than $11.5 billion in active LNG projects are currently planned in the country, according to Industrial Info Resources data. The projects include pipelines, gas processing facilities and floating LNG plants designed to connect Vaca Muerta gas with international markets.
A key development is the San Matias Pipeline, which has secured a $900 million financing package. The project requires a total investment of about $1.3 billion. The 473-kilometer, 36-inch pipeline will transport natural gas from Tratayen in Neuquen province to San Antonio Oeste on the Rio Negro coast.
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The pipeline will supply the Southern Energy Project (SESA), which plans to operate two floating LNG facilities, Hilli Episeyo and Esperanza. The combined capacity of these facilities is expected to reach 6 million tonnes per year, with operations set to begin in 2027 and 2028. According to SESA, the exports are projected to exceed $20 billion between 2027 and 2035
Meanwhile, the Argentina LNG project, backed by YPF, Eni and XRG, is expected to provide another 12 MTPA, with potential expansion to 18 MTPA.
If both projects reach their full planned capacity, Argentina could eventually have LNG export capacity of up to 24 MTPA, thus making it a key player in the international gas market.
