Italian energy major Eni has signed a memorandum of understanding (MoU) with Argentina’s state-owned YPF to evaluate its participation in the South American nation’s $50 billion flagship liquefied natural gas (LNG) initiative.
The Argentina LNG project, a large-scale upstream and midstream integrated gas development, aims to tap unconventional gas from the vast Vaca Muerta shale formation. Developed as a 50:50 joint venture between YPF and Shell, the project targets LNG exports of up to 30 million tonnes per annum (mtpa) by the end of the decade.
The MoU covers the initial phase, which includes upstream development, transportation, and gas liquefaction using two floating LNG (FLNG) units with a combined capacity of 12 mtpa.
“YPF’s choice of Eni as a strategic partner stems from our distinctive FLNG expertise developed in Congo and Mozambique,” said Eni CEO Claudio Descalzi.
YPF CEO Horacio Marin said the agreement with Eni will help fast-track the project timeline. “We’re seeing strong global interest from producers and buyers seeking access to Vaca Muerta’s gas,” Marin added.
Argentina LNG will roll out in three phases:
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Phase 1: Two FLNG vessels with a total of 12 mtpa capacity.
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Phase 2: A 10 mtpa onshore modular liquefaction plant in Sierra Grande, Rio Negro province.
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Phase 3: Expansion with additional trains to boost onshore capacity by another 10 mtpa.
The full buildout envisions a modular onshore terminal capable of exporting up to 30 mtpa of LNG.
YPF and Shell are expected to issue a front-end engineering and design (FEED) tender for the onshore plant by August, with a 10-month scope leading to an EPC award in mid-2026.
With an estimated 308 trillion cubic feet of recoverable gas, Vaca Muerta is the world’s second-largest shale gas formation—positioning Argentina to become a major global LNG supplier.