Adnoc’s XRG joins Argentina LNG project with state-owned YPF, Italy’s Eni

Dubai: Adnoc’s investment unit XRG has signed a binding Joint Development Agreement (JDA) with Argentina’s state-owned YPF and Italian energy company Eni to join the 12 million tons per annum (mtpa) phase of the Argentina LNG project.

The agreement formalizes XRG’s entry into the project, which aims to develop two floating LNG facilities, each with a 6 mtpa capacity, alongside production, processing, transportation, and export infrastructure tapping Argentina’s Vaca Muerta shale basin.

Path to FID?

The JDA establishes the workplan for the next stage, including Front-End Engineering Design (FEED), technical structuring, commercial planning, and financing. A Final Investment Decision (FID) is targeted for the second half of 2026.

Horacio Marín, YPF President and CEO, said: “This new step marks the formal inclusion of XRG into the project we have been developing together with Eni. 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.”

Guido Brusco, Eni Chief Operating Officer Global Natural Resources, added: “With the Joint Development Agreement a new partner – XRG – joins Argentina LNG, which is emerging as one of the most promising opportunities in the global gas landscape.”

Strategic significance

Mohamed Al Aryani, President of International Gas at XRG, said: “Argentina LNG’s potential is significant, and this agreement marks an important milestone in the project’s development. YPF, Eni, and XRG are combining expertise to unlock long-term energy export capacity, investment, and employment in Argentina.”

The partnership strengthens Argentina’s position as a global LNG exporter, unlocking new investment, generating employment, and enhancing the country’s long-term energy export potential.