Eni, YPF, and XRG have signed a binding joint development agreement (JDA) to advance the Argentina LNG project, a milestone that positions the South American nation to become a new force in the global liquefied natural gas (LNG) supply chain.
The agreement represents an essential move towards achieving an FID for the project, which seeks to harness Argentina’s prolific Vaca Muerta shale basin to produce and export LNG at scale.
Under the terms of the JDA, the three partners will collaborate on a comprehensive program covering upstream gas production, LNG processing, transportation, and export infrastructure.
The project’s planned capacity is 12 million tonnes per annum (mtpa), to be delivered through two floating LNG (FLNG) facilities, each with a capacity of 6 mtpa.
According to the partners, the Argentina LNG project aims to create a full value chain from the shale gas production fields to international markets, leveraging cutting-edge liquefaction technology and strategic access to the Atlantic.
Work under the new agreement will focus on front-end engineering design (FEED), as well as key commercial, financial, and technical structuring activities.
Eni’s chief operating officer for global natural resources, Guido Brusco, said the partnership with XRG adds new strength and scale to the venture.
“With the JDA, a new partner – XRG – joins Argentina LNG, which is emerging as one of the most promising opportunities in the global gas landscape,” said Brusco.
“This project is taking shape in a way that reflects both technological leadership and strategic vision.”
The addition of XRG, ADNOC’s international investment arm, underscores growing interest from Gulf producers in South American gas assets, as energy players globally seek to diversify both supply sources and project portfolios in response to shifting regional dynamics.
YPF president and CEO Horacio Marín described the JDA as a major milestone in Argentina’s ambition to become an LNG exporter.
“This new step marks the formal inclusion of XRG into the project we have been developing together with Eni,” Marín said.
“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.”
The final investment decision will hinge on completion of the FEED studies, establishment of commercial agreements, and alignment on project financing.
If approved as scheduled, construction of the FLNG facilities could start in the latter half of the decade, with the first production estimated before 2030.
For Eni, the Argentina LNG initiative aligns with its broader portfolio of gas-focused developments aimed at strengthening global supply security.
Earlier this month, the company dispatched the first cargo from the Nguya floating LNG facility, marking the start of phase two gas exports under the Congo LNG project — another example of its growing emphasis on flexible, modular LNG infrastructure.
