Italy’s Eni and Argentina’s state-owned YPF have finalised a pivotal agreement to progress the Argentina LNG project, centred on the extensive development of the Vaca Muerta gas field in northern Patagonia.
The accord advances both upstream and midstream operations, with ambitions to export liquefied natural gas (LNG) to international markets.
The agreement took shape following a high-level meeting in Buenos Aires, where Eni CEO Claudio Descalzi met with Argentina’s President Javier Milei to discuss current and future energy projects.
The meeting culminated in the signing of the final technical project description for the LNG phase of the Argentina LNG project by Descalzi and YPF’s president and CEO, Horacio Marin.
A preliminary agreement was also signed to facilitate a final investment decision.
The Argentina LNG project is a comprehensive venture that integrates gas production, processing, transportation, and liquefaction through two floating liquefied natural gas (FLNG) units.
Each FLNG unit boasts a capacity of six million tonnes per annum (mtpa), equivalent to about nine billion cubic metres of gas annually.
The project also plans to export associated liquids, with ambitions to reach up to 30 mtpa of LNG in several independent phases.
Claudio Descalzi said: “Today we had the opportunity to showcase the progress of our joint projects and Eni’s prospects in Argentina to President Milei.
“We are proud to have been chosen for such an important project and to contribute to the development of Argentine LNG, which will represent a significant source of supply for international markets.
“The specific and distinctive expertise we have developed in the FLNG projects in Congo and Mozambique makes us an ideal partner for implementing this type of project.”
Eni emphasised that the project aligns with its strategy supporting the energy transition through prioritising gas production and striving for carbon neutrality by 2050.
The agreement builds upon a heads of agreement signed by Eni and YPF in June.
YPF will apply its upstream operational experience, while Eni will leverage its expertise in accelerating development projects using FLNG units.
On the operational scale, YPF CEO Horacio Marin highlighted the project’s extensive demands, stating: “The project would necessitate the drilling of 800 new wells.”
Marin outlined a goal to double the company’s gas production by 2024.
Marin also forecasted that the project would require $25 billion in infrastructure investment and $15 billion for upstream development.
