YPF and Eni announced a framework agreement with ADNOC’s XRG investment arm to join the Argentina LNG project, a joint venture that will develop the Vaca Muerta shale gas field into a 30‑million‑tonne‑per‑year LNG export facility.
Under the agreement, XRG will contribute an equity investment of approximately $3 billion and provide technical expertise in floating liquefied natural gas (FLNG) technology, which Eni has deployed in the Congo and Mozambique. The partnership will accelerate construction of the first two 6‑mtpa FLNG vessels, expected to be operational by 2027.
The project is a key component of YPF’s “4x4 Plan,” which aims to transform the company into a world‑class shale producer and major exporter by 2030. The initial phase will deliver 12 mtpa of LNG, with subsequent phases expanding capacity to 30 mtpa by 2030.
The framework agreement follows earlier agreements between YPF and Eni, including a memorandum of understanding signed on April 14, 2025, and a head‑of‑agreement in June 2025. The new partnership marks XRG’s first entry into the Americas and aligns with its strategy to build a global gas portfolio.
The consortium expects the project to generate annual export earnings of roughly $20 billion and to boost Argentina’s foreign‑exchange reserves. The partnership also supports the country’s goal of becoming a major global LNG exporter.
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