YPF's boss Horacio Marin said Monday at Gastech in Bangkok that the company is set to lock down two to three liquefied natural gas offtake deals. Each would span between 0.5 million and 1.5 million tons annually, and YPF aims to have those agreements in place before making a go or no-go decision in November on a proposed $24 billion export facility.
The plan, called Argentina LNG, pairs YPF with Italy's Eni SpA and Abu Dhabi's XRG, with the trio sharing ownership in roughly equal slices. The project envisions a floating export terminal off Argentina's Atlantic shoreline capable of producing 12 million tons a year, putting it among the largest floating LNG facilities in the world.
While the partners are targeting a November investment decision, the financing that would cover a large chunk of the $24 billion price tag - an unprecedented amount for a single project in Argentina - may not be fully buttoned up by then. Asked if a lending consortium would be firmly committed ahead of the announcement, Marin replied, "No. But there will be letters of intent that they will finish the process."
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The timing isn't random. Following months of disruptions in the Persian Gulf and the Strait of Hormuz, roughly 20% of the global LNG supply has been curtailed, prompting buyers in Asia and other regions to diversify beyond the Middle East. If Argentina LNG clears its November hurdle and signs those sales, it adds another future source into a market that's been scrambling for diversification. For everyday investors, the take-away is simple: energy projects tied to supply security and long-term contracts can influence prices and stability over time, so these November milestones are worth watching even if you never trade a commodity.
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