U.S. Government Supports $6 Billion LNG Project in Argentina
What happened
The U.S. government is supporting a major LNG project in Argentina, led by the Argentine energy group YPF in partnership with Italy’s Eni and Emirati firm XRG. The U.S. Department of State stated that the U.S. Export-Import Bank has issued a non-binding indicative term sheet up to $6 billion for the project. This financing is intended to support the procurement of U.S. goods and services required for the infrastructure development.
From oilprice.com
Why it matters
The project includes the ambitious Andes-Atlantic Corridor, a joint U.S.-Argentinian initiative. Under this initiative, a contract worth more than $1 billion was awarded to Pumpco, a subsidiary of MasTec, Inc., for the export pipeline system. Additionally, McDermott received a contract for the natural gas liquids fractionation and gas treatment facility.
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Who's involved
- YPFArgentine energy group leading the LNG project
- ArgentinaCountry hosting the LNG project
- Export-Import Bank of the United StatesU.S. government financial institution providing potential project backing
- EniInternational partner in the LNG project
- MasTecInfrastructure and construction company awarded a major contract
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Export-Import Bank of the United StatesSpeculative
The U.S. Export-Import Bank could see its core business supported through the indicative term sheet.
- YPFSpeculative
YPF could benefit from the potential $6 billion in U.S. government financing for its core LNG project.
- EniSpeculative
Eni could see its segment of the business strengthened by the U.S. financing support for the LNG project.
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The entities involved
Related events
- Eni and YPF partner in the Vaca Muerta basin, with Eni acquiring interest in Argentine upstream blocks.
- An LNG project in Argentina is seeking major private financing for its development.
- YPF and Cheniere Energy Partners are noted as large-cap energy companies in the market.
- Eni and YPF have applied for a major $51 billion LNG project in Argentina, supported by market-oriented reforms.
- YPF, an Argentine energy company, had its securities recorded in DTC, with tender offers expiring in New York City time.