Ex-Im Bank, private capital to back Argentine energy push
Argentina and the United States are preparing to announce an investment agreement in New York on Wednesday to finance infrastructure projects aimed at expanding Argentine exports of natural gas, critical minerals and other commodities. The agreement marks another step in the strategic alliance between the governments of Javier Milei and Donald Trump, according to Argentine media reports cited by UPI.
The agreement’s main objective is to secure $6 billion for Argentina LNG, a large-scale project designed to produce liquefied natural gas for export. The venture brings together Argentine state-controlled energy company YPF, Italy’s ENI, and XRG, a United Arab Emirates-based company, Argentine outlet Infobae reported.
Argentina LNG is among the country’s most ambitious efforts to convert its vast natural gas reserves into an export business. To do so, Argentina needs infrastructure to process the gas, liquefy it and transport it to international markets.
Weeks before the planned U.S. announcement, YPF, ENI and XRG filed a $51 billion investment proposal under Argentina’s Incentive Regime for Large Investments, known by its Spanish acronym RIGI — the largest single submission to date under the program, according to Argentine media. The Milei government established RIGI to provide incentives for large-scale investments and attract foreign capital to projects considered strategic.
Argentine newspaper Ámbito Financiero reported that funds from the U.S. agreement would be directed at natural gas exports and infrastructure projects in areas considered important to the Argentine economy. The investment commitment is expected to draw backing from the U.S. Export-Import Bank, commonly known as Ex-Im Bank, and private investors, the newspaper reported.
Argentina LNG is not the only project covered by the agreement. Argentine newspaper Clarín reported the package would also include loans and guarantees for other strategic sectors as part of expanding cooperation between Argentina and the United States.
Daniel Dreizzen, Argentina’s former secretary of energy planning, told UPI the agreement sends a positive signal for Argentina because it broadens U.S. support for the country’s strategic projects, including the infrastructure needed to make natural gas exports possible. “It is excellent news for Argentina and is in line with the support it is receiving from the United States,” Dreizzen said.
The former official linked the agreement to an international environment shaped by wars and competition between the United States and China for access to energy and strategic resources. Dreizzen said that context increases the importance of Argentina developing its natural gas and mineral reserves and becoming an international supplier.
“It is key to helping with all the steps Argentina and YPF are taking to make this gas liquefaction megaproject happen and allow the country to export it,” Dreizzen said, referring to the LNG agreement’s role in advancing the project.
“It is a megaproject that changes Argentina,” he added.
The crisis in the Middle East has created new risks for maritime energy transportation and prompted the United States to strengthen its strategy to secure access to strategic resources and reinforce supply chains, UPI reported. Argentina has vast energy and critical mineral reserves and is seeking investment to develop those resources into new sources of export revenue.
The announcement comes as both countries work to deepen their economic relationship. Milei has made the United States a central partner in his foreign policy and has strengthened his personal and political relationship with Trump, UPI reported. The investment agreement marks another step in the strategic alliance between the two governments.