Historic Agreement Signed for Argentina LNG Project
YPF, Argentina's state-owned energy company, and the government of the province of Río Negro formally signed a framework agreement on January 23, 2026, in Buenos Aires. This pivotal memorandum of understanding establishes a comprehensive regulatory and institutional cooperation framework designed to propel the development of the ambitious Argentina LNG project. The signing ceremony saw the participation of Horacio Marín, President and CEO of YPF, and Alberto Weretilneck, Governor of Río Negro.
Key Provisions for Stability and Development
The newly signed agreement is set to provide significant incentives for the large-scale energy initiative. It grants fiscal and regulatory stability for 30 years, a measure intended to complement the existing Large Investment Incentive Regime (RIGI). This long-term stability aims to offer predictability for investors who will be integral to the LNG project's value chain.
Beyond financial aspects, the framework also outlines clear conditions for non-tax elements crucial to the project's execution within the province. Furthermore, it incorporates a dedicated Technical-Professional Training Program. This program, a joint effort by YPF, project-linked companies, the YPF Foundation, and educational institutions designated by Río Negro, seeks to bolster local capabilities and generate employment opportunities within the project's area of influence.
Strategic Importance of the Argentina LNG Project
The Argentina LNG project is envisioned as a strategic endeavor to position Argentina as a reliable global energy supplier. The project focuses on developing the vast resources of the onshore Vaca Muerta field, one of the world's largest shale oil and gas deposits. The overall goal is to export up to 30 million tonnes of LNG per year in various independent phases by 2030. The project involves gas production, processing, transportation, and liquefaction for export, primarily through floating gas liquefaction units (FLNGs). The location chosen for the project's development is Sierra Grande in Río Negro province, selected for its advantageous position.
Previous developments include a non-binding agreement signed in November 2025 between YPF, Eni, and XRG (part of the ADNOC Group) for potential involvement in a 12 MTPA phase of the project. Additionally, Petronas and YPF are collaborating on a joint LNG project in Río Negro with an estimated US$30 billion investment.
Official Outlook and Local Impact
Horacio Marín emphasized the significance of the agreement, stating, 'this joint framework represents a key step toward advancing a strategic project that will position Argentina as a reliable energy supplier for the world, create quality jobs, and promote long-term investment.' Governor Alberto Weretilneck highlighted the transformative potential for the province, noting, 'Río Negro is a key player in Argentina's energy transition, but projects like this one are also the foundation of a profound change in Río Negro's productive matrix. Río Negro continues to change with its focus set on development and the creation of genuine employment.'
5 Comments
Raphael
Finally, Argentina is stepping up as a global energy player! This is great news for our economy.
Donatello
This project only benefits a few big companies, not the everyday people of Río Negro.
Leonardo
30 years of fiscal stability for corporations, but what about the environmental cost?
Michelangelo
Attracting foreign investment with fiscal stability is crucial for large-scale projects like this. Yet, it's vital to ensure the terms don't compromise provincial sovereignty or allow for excessive resource depletion without adequate local compensation.
Donatello
The technical training program is a fantastic initiative to empower local workers.