The export of LNG opens a new chapter in the utilization of Vaca Muerta
The export of LNG opens a new chapter in the utilization of Vaca Muerta and other unconventional gas fields, boosting the diversification of markets for local production.
Southern Energy aims to make Argentina a significant player in the global LNG market, at a time when the demand for flexible energy is growing due to the transition to less polluting sources.
"LNG will not only stabilize the energy trade balance but also attract foreign currency in a sustained manner", experts consulted pointed out.
This project is also part of the long-term strategy of companies like YPF and Pampa Energía, which seek to expand their participation in the international liquefied hydrocarbons business.
The construction of the vessel will involve the creation of thousands of direct and indirect jobs and will mobilize strategic sectors such as engineering, logistics, and maritime services. Additionally, it will position Argentina as a competitive supplier in the Asian and European markets.
With this advancement, Milei's government reinforces its commitment to creating attractive investment conditions in strategic sectors, aiming to drive a new cycle of growth based on high-value exports.
The Secretariat of Energy granted Southern Energy —the consortium comprised of PAE, YPF, Pampa Energía, Harbour Energy, and the Norwegian Golar— the first firm permit to export liquefied natural gas (LNG) for a period of 30 years in Argentina's history.
The authorization will allow the export of up to 11.7 million cubic meters per day (MMm³/d), consolidating a key project for the country's energy and economic future.
The permit is tied to the installation of a liquefaction vessel on the Argentine coast, an endeavor with an initial investment of US$2.9 billion, which could expand to US$7 billion by 2035, according to official estimates.
The project has already received approval under the framework of the Incentive Regime for Large Investments (RIGI), part of the reforms promoted by Javier Milei's government to foster the development of strategic infrastructure.
"The approval of the RIGI guarantees fiscal and regulatory stability for long-term investments", highlighted the Secretariat of Energy.
The commercial operation of the first vessel is scheduled for mid-2027. Currently, negotiations continue among the partners to define the construction of a second liquefaction unit, which could double the export capacity toward the next decade.
