Argentina targets US$30 billion in annual energy exports by 2030, leveraging Vaca Muerta’s shale reserves and a fast-tracked LNG strategy backed by YPF and Pan American Energy.
Argentina’s US$30 Billion Energy Vision: Vaca Muerta and LNG as Strategic Catalysts
(19 May 2025 - The Energy Circle)
Argentina is positioning itself for a major leap on the global energy stage. With new infrastructure in Vaca Muerta, world-class LNG projects underway, and a robust pro-investment framework, the country is laying the foundation for US$30 billion in annual energy exports by 2030/31.
This vision was brought to the forefront during a recent energy panel hosted by Ámbito, where Gustavo Gallino, Vice President of Infrastructure at YPF, and Rodolfo Freyre, Vice President of Gas, Energy and Business Development at Pan American Energy (PAE), outlined the roadmap to a more competitive and export-oriented Argentina.
Their message was clear: Argentina has the resources, the know-how, and—crucially—a path forward. But success will depend on long-term planning, modern infrastructure, regulatory certainty, and international investor confidence.
Scaling Up: The Vaca Muerta Oil Sur Pipeline
One of the flagship projects in this strategy is the Vaca Muerta Oil Sur (VMOS) pipeline. Now 10% complete and backed by a consortium of seven major producers, the pipeline is expected to reach a transport capacity of 180,000 barrels per day by late 2026. It will link production zones in Neuquén to the Atlantic coast of Río Negro, unlocking critical export routes.
“This is a project of national importance,” said Gallino. “It requires complex coordination, but we are moving forward together as an industry.”
In addition to undersea infrastructure and specialised marine buoys, the pipeline project involves the construction of five massive storage tanks in Vaca Muerta—each measuring 87 metres in diameter and over 30 metres tall. The tanks are being developed by Chicago Bridge, and the first components have already arrived at Puerto Madryn.
LNG: From Strategy to Execution
In parallel, Argentina is making rapid progress on its liquefied natural gas (LNG) ambitions. The Argentina LNG project, launched in mid-2024 in partnership with Golar LNG, has expanded to include YPF, Pampa Energía, and Harbour Energy as strategic stakeholders.
The project has already secured:
- Approval under the Large Investment Incentive Regime (RIGI)
- A 30-year export licence for 11.5 million cubic metres of natural gas per day
At a FOB price of US$8, this translates into potential revenues of US$1 billion annually from LNG exports alone.
“No LNG project in the world has moved this quickly from planning to approval,” said Freyre. “This shows our deep belief that LNG must be part of Argentina’s energy future.”
The first floating LNG unit (Hilli) is expected to be operational in 2027, with additional vessels and a dedicated pipeline under evaluation to reduce unit costs and ensure year-round production.
Investment Environment: Built on Certainty and Competitiveness
Both Gallino and Freyre stressed that predictability is now a defining factor in Argentina’s energy sector. The approval of the RIGI framework, passed in 2024, provides:
- 30 years of legal and tax stability
- A 25% corporate tax rate
- Duty-free imports for capital goods
- Free capital mobility and dividend repatriation
These measures have made Argentina one of the most investor-friendly jurisdictions in Latin America, particularly for long-term projects in gas, mining, and renewables.
Gallino noted that YPF and its partners are integrating digital technologies such as AI, digital twins, and paperless engineering into every stage of the project lifecycle.
“Technology is not the bottleneck. We now need suppliers and contractors to match our mindset and capabilities,” he added.
Freyre echoed this call for efficiency, pointing out that Argentina must align its cost structure with international benchmarks.
“Competitiveness must be structural. We cannot afford to be more expensive than the U.S.”
LNG, Oil, and a Changing Regional Landscape
Argentina’s strategy goes beyond hydrocarbons. As outlined in the Argentina Energy & Critical Minerals Investors Guide 2025, the country is building a diversified energy portfolio that combines:
- Second-largest shale gas reserves globally (Vaca Muerta)
- 4th largest lithium reserves worldwide
- A growing base of solar, wind, and hydrogen infrastructure
- Export corridors through Chilean and Atlantic ports
According to the guide:
- Argentina received US$15 billion in FDI in 2024, with over 60% linked to mining and energy
- The energy trade balance is forecast to remain strongly positive, driven by LNG and lithium exports
- Mining exports are expected to exceed US$15 billion by 2035, with CAPEX needs of US$25 billion for full development
The government’s infrastructure push—across pipelines, terminals, and digital permitting—is enabling a more competitive export model.
“If we consolidate our energy sector, we’re reinforcing Argentina’s economic recovery,” concluded Freyre.
