YPF Seeks Record US$16 Billion Loan as Milei Faces Congress Test
Argentina · ECONOMY
Key Facts
- —What happened YPF tapped JP Morgan to arrange up to US$16 billion in project finance for Phase 3 of Argentina LNG.
- —How big The YPF loan Argentina LNG needs, between US$12.5 and US$16 billion, would back a US$20 billion project.
- —The catch A final investment decision is targeted for the second half of 2026, with first exports seen in 2030-31.
- —Who is involved Eni and ADNOC’s XRG hold roughly a third each of Phase 3; bankers contacted over 200 institutions.
- —What comes next Diputados meets in special session on Wednesday 26 August to debate central bank reform and a fiscal bill.
JP Morgan will shop a record LNG financing to over 200 institutions while Milei bargains for votes in a special session.
Argentina’s state-controlled energy firm YPF has hired JP Morgan to raise up to US$16 billion for the third phase of its Argentina LNG project. The YPF loan Argentina LNG is seeking would be the largest private project finance loan in the country’s history, and it lands as President Javier Milei’s government faces a test of strength in Congress.
JP Morgan Mandate Puts Record YPF Loan Argentina Deal in Motion
YPF confirmed it has mandated JP Morgan to raise between US$12.5 and US$16 billion in project finance, according to chief executive Horacio Marín. The money would fund Phase 3 of Argentina LNG, the company’s flagship plan to liquefy and export natural gas from the Vaca Muerta shale formation.
Reuters confirmed the plan, reporting: ‘If raised, the $16 billion would represent the largest private project finance loan in Argentina’s history.’
Marín has been personally involved in the fundraising effort. JP Morgan has contacted more than 200 financial institutions about participating in the deal, an unusually wide net for a single transaction.
The YPF loan Argentina LNG requires is sized against a total Phase 3 investment estimated at US$20 billion, making the financing the central piece of the project’s capital plan.
Floating LNG Units to Export Vaca Muerta Gas
Phase 3 of Argentina LNG calls for two floating liquefaction units, each with capacity of 6 million tonnes per annum, to be installed in the Gulf of San Matías, off the coast of Río Negro province.
YPF’s partners in the phase are Italy’s Eni and XRG, the investment vehicle of Abu Dhabi’s ADNOC. Each partner holds roughly a third of the project alongside the Argentine firm.
The purpose of the project is to export liquefied natural gas produced from Vaca Muerta, Argentina’s vast shale formation, to overseas markets.
Together, the two floating units would add 12 million tonnes per annum of liquefaction capacity in the Gulf of San Matías.
The companies are targeting a final investment decision in the second half of 2026. If the schedule holds, the first LNG exports would leave Argentina in 2030-31.
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Global Banks Courted for the Financing
Marín has met with executives from Deutsche Bank, Citi, Santander and two Japanese banks as part of the roadshow for the YPF loan Argentina LNG is assembling.
The outreach to more than 200 institutions reflects the scale of the challenge of assembling what would be the largest private project finance loan in Argentina’s history.
As arranger, JP Morgan is responsible for syndicating the loan among the contacted institutions ahead of the targeted investment decision in late 2026.
For YPF, securing the loan is the key step before the partners can commit to building the two floating units off the Río Negro coast.
Diputados to Weigh Central Bank Overhaul
While YPF courts global lenders, the government faces a parallel test in Congress. The Chamber of Deputies will hold a special session on Wednesday 26 August at 12:00 to debate two priority bills.
The first is a reform of the central bank’s Carta Orgánica, its charter law. The bill would give the BCRA a sole mandate to preserve the value of the currency.
It would also prohibit the monetary authority from financing the Treasury or provincial governments and from purchasing public debt in the primary market.
Under the proposal, removing the central bank president would require the support of two-thirds of both chambers of Congress.
The session was called after days of negotiation between the ruling party and the provincial blocs whose votes it needs.
Vote Math Uncertain as Government Bargains for Support
The second bill, known as Inocencia Fiscal II, would amend Law 27.799, promulgated on 2 January 2026. It removes the income and asset caps of the simplified tax regime and targets an estimated US$170 billion in undeclared dollars held by Argentines.
To secure the session, La Libertad Avanza had to bargain for votes with a federal agenda that included a mandioca IVA cut for Misiones, the promotion of ‘national capitals’ and a new appeals court for Mar del Plata.
Cracks are visible. The Elijo Catamarca bloc, which answers to Governor Raúl Jalil and is led by Sebastián Nóblega, is distancing itself from La Libertad Avanza and did not sign the session request.
Eduardo Falcone of the MID also withheld support, citing ‘destratos’, or mistreatment. With tensions also reported inside the ruling camp between Patricia Bullrich and Federico Sturzenegger, and between Bullrich and Martín Menem according to TN on 17 August, the outcome of the session remains uncertain rather than doomed.
Frequently Asked Questions
What is the YPF loan Argentina LNG project finance deal?
It is a project finance package of up to US$16 billion that YPF has hired JP Morgan to raise for Phase 3 of Argentina LNG. The project includes two floating LNG units of 6 million tonnes per annum each, located in the Gulf of San Matías in Río Negro province.
Who are YPF’s partners in Argentina LNG Phase 3?
Italy’s Eni and XRG, the investment arm of Abu Dhabi’s ADNOC. Each holds roughly a third of the phase alongside YPF. A final investment decision is targeted for the second half of 2026, with first exports expected in 2030-31.
What will Argentina’s Chamber of Deputies debate on 26 August?
A reform of the central bank’s charter, giving it a sole mandate to preserve currency value, and the Inocencia Fiscal II bill, which targets an estimated US$170 billion in undeclared dollars.
Sources
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