The Italian energy company Eni S. p.A. and the Argentine oil and gas company YPF have signed a preliminary agreement with a subsidiary of ADNOC regarding XRG's participation in the Argentina LNG (ARGLNG) project. This is reported in a press release from Eni.
The preliminary agreement establishes a framework for cooperation between the parties in order to sign a Joint Development Agreement (JDA) for the ARGLNG project.
Eni and ADNOC are strategic partners in the implementation of key projects in the UAE and other regions. The participation of a potential partner in the project will facilitate the final investment decision. Investments in the ARGLNG project are estimated at $50 billion.
ARGLNG is a large-scale integrated project to extract shale gas from the Vaca Muerta field and export up to 30 million tons. LNG to international markets by 2030. The project provides for the liquefaction of gas on two floating installations (FLNG) with a capacity of 6 million tons per year each and the export of related elements. The field's reserves amount to 8.7 trillion cubic meters of gas and 16.2 billion barrels of oil. The project assumes the possibility of increasing productivity to 18 million tons per year.
Eni was selected as a strategic partner for Argentine LNG based on the unique know-how developed during the implementation of FLNG projects in Congo and Mozambique, as well as global leadership in the construction of projects with similar technological requirements. Eni has experience in operating floating LNG plants (FLNG), including the Coral North and Coral South FLNG projects.
Argentina plans to implement three LNG production projects with a total capacity of 36.7 million tons per year, including the construction of the GNL export terminal in Argentina, which will use gas from the Vaca Muerta shale deposit as raw materials, as well as the TGS plant in Puerto Galvana and the Golar-Pan American FLNG floating installation.
The launch of new LNG production facilities will allow Argentina to overtake Trinidad and Tobago, whose existing capacities allow exporting no more than 12 million tons of LNG per year.
XRG is the investment arm of ADNOC, established in November 2024. In 2025, XRG invested in gas production projects in Mozambique, Turkmenistan, Egypt, Azerbaijan and the Rio Grande LNG project in the United States.
Eni S. p. A. is an Italian multinational energy company and one of the largest oil companies in the world with a market capitalization of 40 billion euros. The main production regions include Africa and Kazakhstan, while the main sales markets are Italy and other European countries. The headquarters is located in San Donato Milanese (Milan).
YPF S. A. is the largest Argentine energy company controlled by the Government of Argentina. The company is engaged in the exploration and production of oil and gas, as well as the transportation, processing and marketing of gas and petroleum products. The headquarters is located in Buenos Aires (Argentina).
