JPMorgan And Citi’s $1 Billion Pipeline Talks Put Argentina’s LNG Push On A Clock

Key Points

1. JPMorgan, Citi and Santander are discussing a $1 billion syndicated loan for a new Vaca Muerta-to-coast gas pipeline.
2. The line would supply two floating LNG ships offshore Río Negro, starting late 2027 and about a year later, with Germany lined up as a buyer.
3. The talks mark Argentina’s return to global project finance, but success depends on delivery and stable rules.

Argentina wants to turn Vaca Muerta from a domestic gas engine into an export platform, and the next bottleneck is the route to the sea.

JPMorgan Chase and Citigroup, alongside Banco Santander and other lenders, are in talks to arrange $1 billion in syndicated financing for producers backing a dedicated gas line across Argentina.

The pipeline would move gas from the Neuquén basin to the Atlantic coast, feeding an LNG export hub in the San Matías Gulf.

The project sits under Southern Energy S.A. Pan American Energy holds 30% and is 50% owned by BP. YPF holds 25%. Pampa Energía, Harbour Energy and Golar LNG hold smaller stakes.

Argentina targets LNG exports with Golar vessels

The export plan uses two chartered floating liquefaction vessels from Golar, with about 6 million tonnes per year of combined LNG capacity: Hilli Episeyo, expected to start production at the end of 2027, and the MK II unit expected about a year later.

Germany’s trader SEFE has signed a heads-of-agreement for 2 million tonnes per year over eight years, matching the first ship’s start-up window.

In the first stage, the vessels can draw on existing southern gas systems with upgrades. To fully supply both ships, Southern Energy needs a dedicated trunkline from Vaca Muerta.

Argentina is often cited as having the world’s second-largest recoverable shale gas resources, and recent output is cited at 550,000 barrels of oil equivalent per day.

For lenders, the closest precedent is VMOS. In July 2025, the shale-oil export project secured a $2 billion syndicated loan, reported at SOFR plus 5.5%, to fund an oil pipeline and export facilities.

If the gas financing closes, it would reinforce the Milei administration’s market-liberal reforms: global capital will engage again, but only if projects stay bankable and the rulebook stays steady.

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