Eni and YPF, Argentina's leading energy company, signed a non-binding agreement with XRG, part of the ADNOC Group, on November 4, 2025, in Abu Dhabi, UAE. The agreement addresses XRG's potential involvement in the 12 MTPA liquefied natural gas phase of the integrated upstream-midstream Argentina LNG project.

Project Overview and Scope

The Argentina LNG project represents a large-scale, integrated upstream and midstream gas development initiative designed to develop resources from Argentina's onshore "Vaca Muerta" field. The project aims to serve international markets by exporting up to 30 million tonnes of LNG per year through multiple phases, scheduled for completion by 2030.

The comprehensive project encompasses gas production, processing, transportation, and liquefaction for export purposes. The liquefaction component will utilize two floating gas liquefaction units, each with a capacity of 6 MTPA, equivalent to approximately 9 billion cubic meters of gas per year. Additionally, the project includes provisions for the valorization and export of associated liquids.

Technical Framework and Development Structure

The current agreement builds upon the Final Technical Project Description that Eni and YPF signed on October 10, 2025. This foundational document established the technical parameters and operational framework for the Argentina LNG project, setting the stage for the multi-phase development approach. The project's design incorporates floating LNG technology, with the two 6 MTPA floating gas liquefaction units serving as the primary export infrastructure.

This approach allows for flexible deployment and operational efficiency in serving international LNG markets from Argentina's Vaca Muerta field resources.

Strategic Partnership Framework

The November 4 agreement establishes a framework for cooperation between Eni, YPF, and XRG, with the primary objective of advancing toward a Joint Development Agreement for the Argentina LNG project. This cooperative structure reflects the complex nature of large-scale LNG developments and the need for multiple strategic partners with complementary capabilities.

Eni and ADNOC maintain an established strategic partnership, having previously collaborated on key projects in the United Arab Emirates and other international locations. This existing relationship provides a foundation for XRG's potential participation in the Argentina LNG initiative.

Investment Decision Support

XRG's involvement as a potential partner in the Argentina LNG project is expected to provide support for reaching the Final Investment Decision. ADNOC Group's participation through XRG brings additional technical expertise and financial capability to the project development process. The non-binding nature of the current agreement allows all parties to conduct detailed due diligence and finalize commercial terms before committing to the Joint Development Agreement.

This structured approach ensures that all technical, commercial, and operational aspects are thoroughly evaluated before advancing to the final investment phase. The 12 MTPA phase represents a significant portion of the project's overall 30 million tonnes per year export capacity target. The phased development approach allows for systematic expansion of production and export capabilities while managing technical complexity and capital requirements across multiple development stages.

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