Rome, 12 March 2026 – ReCommon today is serving a cease and desist letter to Italian export credit agency SACE and its parent entity, the Ministry of Economy and Finance – in agreement with the Ministry of Foreign Affairs and International Cooperation – warning it against supporting the Argentina LNG project in Argentine Patagonia. Among other things, the project involves the installation of six gas liquefaction vessels (FLNG) in the unspoilt San Matías Gulf, two of which will be built by ENI, with SACE most likely guaranteeing the operation with public money.
The six floating units will receive gas to be converted into liquid form for export from the immense Vaca Muerta field, the world’s second largest shale gas reserve. The initiative is led by YPF, Argentina’s leading oil and gas company, which is owned by the state.
From a financial perspective and in terms of the resulting investment risk, the operation involves a national context – that of Argentina – characterised by structural economic fragility and high exposure to macroeconomic and political variables. It is very significant that SACE itself, in its analysis, attributes a medium-high political risk (71/100) and a high credit risk (82/100) to Argentina.
From an environmental and health perspective, the critical issues appear even more significant. The nearby Valdés Peninsula was declared a UNESCO World Heritage Site in 1999 due to the uniqueness of its habitat and the presence of marine species of extremely high conservation value, including southern right whales, killer whales, South American sea lions, elephant seals, dark dolphins and Magellanic penguins. The area also includes nature reserves such as Punta Bermeja, whose promontory is home to La Lobería, the largest sea lion colony on the South American continent, Caleta de Los Loros and Bahía de San Antonio, previously protected against oil and gas activities by a law repealed in August 2022 for the sole purpose of allowing polluting operations in the area. The location of the floating gas liquefaction units, as well as the associated maritime traffic, would also interfere with the migratory routes of the southern right whale.
«During our recent field mission in Argentina, in the area affected by the project, we learned that there were also serious issues from the point of view of public consultations. The meetings with local communities, promoted by the YPF company, took place in a militarised context characterised by tensions that created an intimidating climate for citizens and local associations opposed to the project», said Simone Ogno of ReCommon. «What’s more, this would be yet another project that increases Italy’s dependence on fossil fuels, a short-sighted choice if we look at what is happening with the closure of the Strait of Hormuz in recent days. For all these reasons, we are forced to formally warn SACE not to use public money for such a disaster», concluded Ogno.
