YPF signs agreement with Italy’s Eni and UAE’s XRG to develop LNG in Argentina

State-owned Argentine energy giant YPF signed a joint development agreement with Italian oil and gas corporation Eni and United Arab Emirates-based investment company XRG to advance Argentina LNG. YPF and Eni had already signed an investment commitment contract last year for what Argentine company’s CEO, Horacio Marín, said would be the two “largest LNG tankers in the world.” On Thursday, the Abu Dhabi-based investment company joined the project, according to communiqués by YPF and Eni. The project Argentina LNG is a large-scale natural gas liquefaction project that seeks to massively develop the resources of Vaca Muerta, a shale oil and gas region in the Argentine Patagonia. It aims to produce 12 million metric tonnes a year of LNG through two floating liquefaction units. The project had a bumpy ride. In 2024 and 2025, two major international companies, Malaysia’s Petronas and England’s Shell, abandoned it. Last year, YPF ditched its original plans to build an onshore LNG plant in Río Negro province, opting instead to manufacture ships with liquefaction units.  Thursday’s agreement establishes the workplan for the next stage of development: start Front-End Engineering Design (FEED) and related activities, including engineering, technical structuring and key commercial and financing workstreams, according to a statement. Horacio Marín, President and CEO of YPF, said that the agreement “marks the formal inclusion of XRG into the project we have been developing together with Eni.” He added that they aim to reach the Final Investment Decision during the second half of 2026. Eni Chief Operating Officer Global Natural Resources, Guido Brusco, said that, with XRG’s partnership, Argentina LNG is “emerging as one of the most promising opportunities in the global gas landscape.” Mohamed Al Aryani, President of International Gas at XRG, added that the project’s potential is “significant.”  “YPF, Eni and XRG share the ambition to progress a large-scale LNG project that supports reliable, flexible energy supply to international markets while creating long-term value for partners and local communities,” he added.