US considers more strategic financing for Argentinian oil and gas projects

President Milei has been visiting the US this week

WHAT The US may loan more Ex-Im Bank funds and also invest strategic national security funds in Argentinian petroleum.

WHY President Trump has been keen to expand strategic US influence especially in the Americas.

WHAT NEXT The outcome for energy of President Javier Milei’s visit to Washington will be closely watched.

The US is considering expanding financing for oil and gas, mining and infrastructure projects in Argentina beyond the $7bn framework announced by its Export-Import (Ex-Im) Bank in September, while also exploring the use of funds from the US Department of War for strategic investments, as higher global borrowing costs complicate access to capital, La Nación reported. The US is also seeking to expand its influence over the rest of the Americas. 

Katrien Hinderdael, acting director and coordinator of the US Department of State’s (DoS) Partnership for Global Infrastructure and Investment, said Washington was already discussing support exceeding the Ex-Im Bank framework. She made the remarks during the International Lithium Seminar in South America, held in Jujuy last week, but did not announce a new financing commitment.

The US International Development Finance Corporation (DFC) is assessing about 20 projects in Argentina, including a potential corporate loan to Vista Energy Argentina and discussions with Pampa Energía concerning a natural gas liquids project led by TGS. The facility would process components of gas produced in the Vaca Muerta shale formation for export from Bahía Blanca.

Oil investment

Documents indicate that the proposed Vista loan could support drilling equipment leases, new wells and completion services. The financing would cover the company’s general activities rather than a single development. The assessment included a visit in August and an environmental and social audit on September 22. The documents do not specify the loan’s amount or duration, and no final approval has been confirmed. Vista declined to comment.

The potential financing forms part of Washington’s broader effort to strengthen supply chains and expand its influence over strategic resources, amid competition with China. The Andes-Atlantic Corridor, presented on September 23, aims to connect mining resources in Argentina’s north-west as well as oil and gas production in Vaca Muerta with Atlantic ports and Western markets.

Identified investment opportunities include the Belgrano, San Martín and Urquiza railway lines, freight connections between Vaca Muerta and Bahía Blanca, ports along the Hidrovía waterway and electricity transmission networks. Digital infrastructure projects include upgrades to Arsat’s fibre-optic network, submarine cables, satellite connectivity and data centres for artificial intelligence.

The US Ex-Im Bank’s supply chain resilience initiative excludes projects controlled by Chinese entities, as well as developments reliant on Chinese technology or with a significant proportion of customers in that market. Eligibility therefore depends on ownership, technology and the destination of a project’s output.

Hinderdael said Ex-Im financing was intended to support US suppliers of equipment and technology, including in mining. The initiative can also finance projects without direct participation by an American company, provided they include supply agreements serving the US market. She cited lithium deliveries to a processing plant in the United States as an example.

DFC

The DFC has a wider range of financing tools, including loans, equity investments, political risk insurance and support for project development. “It is not necessary for a US company to participate, but the project must be aligned with our broader strategic interests and with the strategic interests of the partner in which we are investing,” Hinderdael said.

She also raised the possibility of involving the strategic capital office of the US Department of Defence, which President Donald Trump calls the Department of War. The office has lending capacity of $100bn for critical mineral supply chains considered essential to US security, although that funding is global and no allocation for Argentina has been announced.

“For that reason, if there are strategic projects that require significant capital, we can bring in the strategic capital office to invest directly in those assets,” Hinderdael said.

The office has also emerged as a potential source of financing for US-backed oil investments in Venezuela. Washington is exploring arrangements to secure long-term access to Venezuelan crude reserves through partnerships with private investors. The Pentagon's office of strategic capital could provide financial support for the proposed ventures, although its lending role has not been finalised, according to the Washington Post.

The proposed Venezuelan arrangement illustrates how the Trump administration is increasingly linking investment in strategic resources to national security objectives.

Reuters reported on August 31 that Washington was pursuing a three-part structure involving an intergovernmental agreement, Venezuelan oil production partnerships and a US equity transaction. Under the proposal, the Pentagon would acquire a 35% stake in North American Blue Energy Partners through warrants, although the structure and necessary approvals remain uncertain.

Milei visits the US

Argentinian president Javier Milei is making his fifth visit to the US in 2026. He arrived in Washington on October 14, and was scheduled to return to Argentina on October 16.

It is his 20th visit to the US since his election as president in 2023.

His programme includes a meeting with Harold Hamm, founder of US oil producer Continental Resources, which has been expanding its investments in Argentina's Vaca Muerta shale formation. He was also scheduled to address the US Chamber of Commerce.

Grants offered

During the lithium seminar, the US delegation also offered grants for feasibility studies and environmental assessments, alongside technical assistance for electricity infrastructure planning and mining projects.

A central financing proposal already under consideration is Argentina LNG, led by state-controlled YPF alongside Italy’s Eni and the United Arab Emirates’ XRG. Ex-Im has submitted an indicative, non-binding proposal of up to $6bn to finance US goods and services for the project, subject to final board approval.

The US delegation additionally met Argentine officials and businesses in Buenos Aires, Salta and Jujuy. Discussions included the Belgrano Cargas railway, the proposed sale of three thermal power plants and other privatisation initiatives.

Higher US Treasury yields, which have exceeded 5% for 10-year bonds, have increased financing costs for countries and companies. Argentina is particularly exposed because expensive borrowing can delay corporate and provincial debt issues, postponing foreign-currency inflows.

According to Central Bank data for September, Argentine companies and provinces had issued $23.6bn in domestic and international debt and sold $19bn of those proceeds on the foreign-exchange market. A further $4.6bn remained to be liquidated. Companies are required to bring the funds into the market within 180 days, meaning delayed bond sales could also defer the arrival of dollars.

The proposed US support could help sustain investment while providing an alternative to international debt markets.

Washington will watch China’s role closely. Argentina has expanded its currency swap arrangement with China, and the economic team has told investors it could use $8bn under the agreement, if necessary, including for debt buybacks.