Argentina’s Vaca Muerta Eyes LNG Exports to Europe

Non-binding framework points to first shipments by 2027 as producers seek overseas demand

5 Jan 2026

Argentina is positioning its vast Vaca Muerta shale gas formation for a larger international role, with plans that could see liquefied natural gas exported to Europe from 2027.

The shift rests on a long-term framework agreement under discussion with European buyers, including Germany. The arrangement is not yet binding and depends on final contracts, regulatory approvals and the construction of export facilities. But it marks a clear change in ambition for a sector that has until now focused mainly on the domestic market.

Energy security concerns in Europe have sharpened interest in new supply sources, while Argentina is seeking outlets for rising shale production that local demand has struggled to absorb. LNG exports are increasingly viewed as a way to stabilise investment and maintain drilling activity.

Pan American Energy is playing a central role, working through a consortium structure to attract so-called anchor customers. Long-term commitments from buyers would provide predictable revenues, which companies say are needed to support large-scale infrastructure spending.

State-controlled YPF is also involved, lending political backing and operational scale. Its participation reflects a broader shift in government policy, following regulatory changes designed to make gas exports more attractive and rebuild confidence among international partners. Analysts say cooperation between private producers and YPF will be essential if the plans are to advance beyond the planning stage.

Rather than starting with large onshore liquefaction plants, the proposal centres on floating LNG units supplied by Golar LNG. These vessels can be deployed more quickly, require lower upfront investment and allow capacity to be expanded in stages as demand grows.

Supporters argue that successful LNG exports could unlock foreign investment, create jobs and extend Vaca Muerta’s relevance beyond Argentina. Challenges remain, including project costs, financing and environmental oversight. Whether the country can turn intent into exports will depend on execution over the next few years.