Eni, YPF & XRG Advance 12 mtpa Argentina LNG Project

In global energy markets and large-scale LNG infrastructure development, integrated upstream-to-export projects are central to securing long-term gas supply. Eni, YPF and XRG have signed a binding Joint Development Agreement (JDA) to advance Argentina LNG, a 12 million tons per annum (mtpa) liquefied natural gas project designed to monetize resources from Argentina’s Vaca Muerta shale basin.

The agreement establishes the next development phase toward Final Investment Decision (FID), targeted for the second half of 2026.

Integrated floating LNG concept
Argentina LNG is structured as a fully integrated gas development, covering upstream production, gas processing, transportation and export infrastructure. The project is planned around two floating LNG (FLNG) units, each with a liquefaction capacity of 6 mtpa, for a combined output of 12 mtpa.

Floating liquefaction facilities allow offshore or near-shore processing of natural gas into LNG without requiring large onshore liquefaction terminals. This approach can reduce permitting complexity and accelerate time to market compared with conventional onshore plants, while maintaining industrial-scale production capacity.

By integrating the full value chain — from shale gas extraction in Vaca Muerta to liquefaction and export — the partners aim to optimize logistics, cost structure and operational control across the project lifecycle.

Transition to FEED and technical structuring
Under the Joint Development Agreement, the partners will commence Front-End Engineering Design (FEED). This phase defines the technical configuration of the floating LNG facilities, processing systems, marine infrastructure and associated gas transportation solutions.

In parallel, the companies will advance commercial structuring, financing frameworks and detailed engineering activities required to support the investment case. Completion of FEED is a critical step toward FID, as it provides validated cost estimates, technical specifications and execution schedules.

The inclusion of XRG as a formal partner consolidates the project’s ownership structure and strengthens its international development capabilities alongside Eni and YPF.

Strategic positioning in global LNG markets
With planned capacity of 12 mtpa, Argentina LNG would position the country among established LNG exporters, expanding supply diversity in global gas markets. For comparison, LNG export projects of similar scale typically serve multiple long-term offtake agreements across Europe, Asia and other demand centers.

Development of the project is also expected to stimulate investment across Argentina’s upstream, midstream and marine sectors, while increasing long-term export capacity from Vaca Muerta — one of the world’s largest shale gas formations.

The Joint Development Agreement therefore represents a structural milestone: moving the project from conceptual development into detailed engineering and commercial definition, with a defined pathway toward Final Investment Decision in 2026.

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