Eni and YPF have finalized a comprehensive Technical Project Description to propel the 12 million-ton-per-year Argentina LNG initiative towards a Final Investment Decision, representing a significant advancement in Argentina’s efforts to establish itself as a key player in the global LNG market.
During a visit to Buenos Aires, Eni’s CEO Claudio Descalzi and YPF’s CEO Horacio Marin formalized the Technical Project Description (TPD) for the 12 MTPA phase of the Argentina LNG (ARGLNG) initiative. This agreement lays the groundwork for a Final Investment Decision (FID) on one of the most ambitious gas export endeavors in Latin America.
The Argentina LNG project aims to create an integrated upstream and midstream model featuring gas production, processing, transportation, and liquefaction. The initial phase will consist of two floating LNG (FLNG) units, each having a capacity of 6 MTPA – approximately 9 billion cubic meters annually – allowing for the export of liquefied gas and related liquids.
This signing builds on the Head of Agreement reached between Eni and YPF in June 2025. The partners plan to harness Eni’s expertise in rapidly deploying FLNG solutions, demonstrated in projects located in Congo and Mozambique, while YPF contributes its operational knowledge from Argentina’s Vaca Muerta shale formation.
The event was attended by Argentina’s President Javier Milei, who has prioritized energy exports as a cornerstone of his governmental economic strategy. The ARGLNG project is designed to tap into the extensive unconventional gas reserves of Vaca Muerta, facilitating Argentina’s transition from a regional gas supplier to a global LNG exporter. Upon full realization, the project could produce as much as 30 MTPA of LNG exports across multiple phases.
For Eni, this partnership bolsters its strategy focused on gas growth and aligns with its 2050 objective of carbon neutrality by enhancing low-carbon gas production and export capabilities. For YPF, this collaboration presents a viable route to monetize Vaca Muerta’s production and draw international investments into Argentina’s energy sector.
By Charles Kennedy for Oilprice.com
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