Vaca Muerta’s LNG Moment Draws Closer

A new LNG framework sketches a route from Vaca Muerta to Europe by 2027, boosting hopes of global reach while leaving big hurdles ahead

12 Jan 2026

For years Argentina’s shale bounty has seemed stranded. Vaca Muerta, one of the world’s largest shale-gas formations, produces more than the local market can easily absorb, yet lacks a clear route abroad. A newly announced Heads of Agreement suggests that may be changing.

The outline deal would send gas from Vaca Muerta to liquefied natural gas cargoes bound for Europe, with shipments possibly starting in 2027. It is not binding. Still, it is among the most concrete efforts yet to link Argentina’s shale wells with foreign buyers.

If final investment decisions are taken and contracts signed, up to 2m tonnes of LNG a year could be exported. That would be modest by global standards, but symbolically important. For decades Argentina has talked up its shale riches while being constrained by weak domestic demand, patchy pipelines and the absence of LNG terminals. Analysts see the agreement as the first attempt to map the entire chain from wellhead to ship, even if many parts remain aspirational.

The project is being shepherded by Southern Energy, a consortium that wants to position itself as the intermediary between local producers and global markets. By signalling long-term export intent, it hopes to encourage investment in drilling, transport and liquefaction. Investors are likely to wait for firmer details. Volumes, pricing and construction schedules remain vague.

On the demand side, Germany’s SEFE has expressed interest, reflecting Europe’s continuing search for stable gas supplies after the shock of losing Russian imports. That, in turn, points to a broader revival of long-term contracts after years in which buyers favoured spot markets.

For Argentine producers such as Pan American Energy, exports could smooth revenues and reduce the boom-and-bust cycles of the local market. But execution risks loom large. Pipelines and LNG plants must be financed and built, permits secured and environmental standards met, all while keeping costs in check.

For now the framework is an opening bid rather than a verdict. If it hardens into binding deals and ships its first cargoes by 2027, Argentina may finally start converting shale abundance into global clout.