Trump backs Argentina’s landmark LNG project in win for Milei

The US Export-Import Bank is offering to lend up to US$6 billion of financing for Argentina’s signature natural gas project, another boost of support by the Donald Trump administration as President Javier Milei seeks foreign investment. 

Argentina LNG, which would be the biggest infrastructure project in the country’s history, received an offer from the US government’s credit agency, according to a statement Wednesday by state-run energy firm YPF SA, which is leading the project. Italy’s Eni SpA and Abu Dhabi’s Adnoc are also invested in the project to monetise Argentina’s vast shale gas resources in Patagonia. 

The three companies are rushing to get banks including JPMorgan Chase & Co. and Santander to lend a big chunk of the $24 billion they need to build infrastructure, including processing plants, pipelines and floating liquefaction units. That’s a tall task in Argentina, where financing for energy projects in the Milei era has revived, but for much smaller sums.

YPF Chief Executive Officer Horacio Marín told Bloomberg News last week that the partners would make a final investment decision in November – but probably only with letters of intent from banks and export credit agencies to complete lending arrangements.

Interest in Argentina LNG has been growing as buyers in Europe and Asia look to diversify away from the Middle East amid the war in Iran. This project would produce 12 million tons a year of liquefied natural gas on purpose-built vessels, which could make it the biggest offshore liquefaction plant in the world and alter the global map of suppliers.

Under Milei, Argentina is developing a major shale exports hub on the Atlantic coast, including another smaller LNG facility and an oil port, both set to start operations next year. Argentina LNG is projected to debut in 2030 should construction move forward. 

The ExIm Bank’s offer comes a year after US President Donald Trump’s administration provided Milei’s government with a US$20-billion currency swap line to mitigate a currency sell-off ahead of midterm elections. The US and Argentina also signed a trade agreement last February.