YPF Sociedad Anónima, Italy’s Eni, and the U.S. LNG developer XRG have entered into a joint development agreement to advance the Argentina LNG project, a floating liquefied natural gas facility that will tap the Vaca Muerta shale play. The consortium will build a 12‑18 million‑ton‑per‑annum (mtpa) facility, with the first phase targeting 12 mtpa through two 6 mtpa units and a potential expansion to 30 mtpa in later phases.
The partnership aligns with YPF’s strategy to transition from conventional production to a pure‑shale, export‑oriented model. By combining YPF’s domestic expertise, Eni’s international LNG experience, and XRG’s floating LNG technology, the consortium aims to secure a non‑recourse project‑finance structure that limits balance‑sheet exposure while unlocking significant gas volumes for global markets.
The agreement initiates front‑end engineering design (FEED) work and sets a target for a final investment decision (FID) in the second half of 2026. Phase 1 of the project is expected to come online in 2027, providing Argentina with a new export route that could strengthen the country’s dollar reserves and support President Javier Milei’s economic agenda.
Horacio Marín, President and CEO of YPF, said, “This new step marks the formal inclusion of XRG into the project we have been developing together with Eni. These two world‑class players allow us to position Argentina LNG as one of the leading LNG projects globally. We will now continue working very intensively to reach FID during the second half of 2026.” Guido Brusco, Eni Chief Operating Officer Global Natural Resources, added, “With the Joint Development Agreement a new partner – XRG – joins Argentina LNG, which is emerging as one of the most promising opportunities in the global gas landscape. This project is taking shape in a way that reflects both technological leadership and strategic vision.” Mohamed Al Aryani, President, International Gas at XRG, noted, “Argentina LNG's potential is significant, and this agreement marks an important milestone in the project's development. YPF, Eni, and XRG share the ambition to progress a large‑scale LNG project that supports reliable, flexible energy supply to international markets while creating long‑term value for partners and local communities.”
The project follows earlier exits by Shell and Petronas, which left due to cost and risk concerns. The new consortium’s focus on floating LNG technology, a non‑recourse financing model, and a clear phase‑based development plan is designed to address those challenges and reduce exposure to the high capital intensity that previously deterred partners.
The joint development agreement represents a key milestone in YPF’s transformation plan and positions Argentina as a potential major LNG exporter by 2030. The partnership also strengthens the global LNG supply chain by adding a new, flexible export route that can respond to shifting demand in Europe, Asia, and the Americas.
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