The German government is considering backing liquid natural gas (LNG) imports from Argentina with state guarantees. In late January the Federal Ministry of Economic Affairs (BMWi) received a preliminary request concerning an LNG project in the Rio Negro province of Argentina, which it confirmed in response to a parliamentary question from Left‑party MP Tamara Mazzi, according to “Spiegel”.
The requested support involves guarantees for “unbundled financial credits” (UFK). These guarantees are intended primarily for overseas commodity projects and can cover economic and political default risks. In the event of a loss, the German state would largely shoulder the damage.
The request appears to be linked to a new gas partnership between the state‑owned company Sefe and the Argentine firm Southern Energy. In December 2025 the two companies announced a supply agreement: starting in 2027, Sefe plans to purchase up to 2 million tonnes of LNG per year from South America-about a third of Germany’s current LNG imports.
The gas for the project will be extracted from the Patagonian Vaca Muerta field and shipped via two floating terminals in Golfo San Matías. Given Argentina’s perceived economic instability, a state guarantee could be decisive for the venture. Sefe told “Spiegel” that it had not applied for such guarantees; instead, the individual lender would lodge the application.
Whether the state should guarantee investments in gas projects remains contentious. In 2023, former Finance Minister Robert Habeck’s government introduced a “climate assessment” for such guarantees, ensuring that financed projects align with the 1.5 °C climate goal. The current administration is planning to relax those guidelines. A BMWi spokesperson said that the assessment is already underway.
