JPMorgan and Santander will lead fundraising for the Argentina LNG project, with total financing targeted at $15 billion and a final investment decision expected by November, according to Bloomberg reporting on the deal structure.
The two banks are coordinating a capital raise for a facility on Argentina's Atlantic coast designed to produce 12 million tons of liquefied natural gas annually. The project is a three-way partnership between Italy's Eni, Argentina's state energy company YPF, and the United Arab Emirates-based XRG, each holding equal stakes.
Argentina has positioned LNG development as a priority to strengthen export revenue and dollar reserves. The country's energy ministry has backed the project as part of broader efforts to monetize natural gas reserves in the Vaca Muerta shale formation. A final investment decision in November would clear the path for construction to begin in 2027.
Eni, YPF, and XRG signed their joint development agreement in February 2026. The partners have said the facility would operate with a 25-year concession and employ local labor during both construction and operation phases. Argentina's tax and royalty regime for the project remains under negotiation with the national government.
LNG financing at this scale has continued to draw institutional capital despite volatility in global gas prices. The $15 billion commitment equals roughly 75 percent of Argentina's central bank reserves as of August 2026, the country's reliance on foreign investment to execute the project at this size.
The November timeline means JPMorgan and Santander will need to complete due diligence, secure debt commitments from development finance institutions and export credit agencies, and structure equity contributions from the three partners within the next two months. The document to watch is the binding term sheet from the lead arrangers, which would confirm the debt-to-equity ratio and the identity of anchor lenders.
