Eni and Argentina’s state-backed energy major YPF have signed a non-binding agreement with XRG, a subsidiary of the Abu Dhabi National Oil Company (ADNOC) Group, to explore potential collaboration on the 12 million tonnes per annum (MTPA) liquefied natural gas (LNG) phase of the Argentina LNG (ARGLNG) project — a cornerstone development aimed at turning the country into a major LNG exporter by 2030.
The agreement establishes a framework for cooperation toward a Joint Development Agreement (JDA), potentially paving the way for XRG’s participation in the project and helping advance the Final Investment Decision (FID).
ARGLNG is an ambitious, integrated upstream-midstream initiative designed to harness the vast gas reserves of Argentina’s onshore Vaca Muerta shale formation. The project targets the export of up to 30 MTPA of LNG by the end of the decade, developed in multiple phases.
Under the Final Technical Project Description signed by Eni and YPF in October, the first phase includes two floating liquefied natural gas (FLNG) units with a combined capacity of 12 MTPA—equivalent to about 18 billion cubic meters of natural gas annually. The project scope encompasses gas production, processing, and transportation, as well as the valorization and export of associated liquids.
The potential entry of ADNOC’s XRG would add financial and technical strength to the partnership, aligning with ADNOC’s expanding global LNG portfolio and deepening its strategic collaboration with Eni. The two companies already work together on major projects in the United Arab Emirates and other international markets.
Argentina’s Vaca Muerta shale play—one of the world’s largest unconventional gas resources—has been central to the country’s plans to shift from an energy importer to a significant exporter. The ARGLNG project represents a major step in that direction, offering both a boost to domestic production and an avenue to capture global LNG demand, particularly in Asia and Europe.
If realized, ARGLNG would position Argentina among the top LNG exporters by the next decade, marking a transformative milestone for the nation’s energy sector and a new frontier for international oil and gas cooperation.
By Charles Kennedy for Oilprice.com
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