XRG, the global investment platform of Abu Dhabi National Oil Company, has entered into a joint development agreement (JDA) with Italy’s Eni and Argentina’s YPF to accelerate the growth of Argentina’s liquefied natural gas (LNG) industry.
Through the agreement, the partners aim to advance an integrated gas production and liquefaction development. Once operational, the project is expected to unlock resources from Argentina’s Vaca Muerta formation and strengthen the country’s role as a sustained LNG exporter to global markets.
The Argentina LNG initiative is projected to generate 12 million tonnes per annum (mtpa) of capacity, supported by two floating LNG units, each capable of producing 6 mtpa.
The overall scope covers upstream gas extraction, processing, transport networks, and LNG export facilities.
The JDA represents a key step forward, outlining a structured roadmap for the next development phase. The consortium will now move into Front-End Engineering Design (FEED), alongside detailed engineering, technical planning, commercial structuring, and financing preparations.
Mohamed Al Aryani, President of International Gas at XRG, noted that Argentina LNG holds considerable promise and described the agreement as a pivotal stage in its progression.
He emphasised the shared commitment of XRG, YPF and Eni to deliver a large-scale LNG venture capable of supplying dependable and adaptable energy to international markets while fostering long-term economic value locally.
Horacio Marín, President and CEO of YPF, stated that the agreement formally brings XRG into the partnership previously developed with Eni.
He highlighted that the inclusion of two global energy leaders enhances the project’s international standing and confirmed that efforts are now focused on reaching a final investment decision (FID) in the second half of 2026.
Guido Brusco, Chief Operating Officer for Global Natural Resources at Eni, described the signing of the JDA as a significant development, welcoming XRG as a new partner in what he characterised as one of the most compelling growth opportunities in the global gas sector.
