Adnoc's XRG, YPF and Eni to jointly develop Argentina LNG project

Dubai: XRG, the international energy investment arm of ADNOC, has signed a framework agreement with Argentina’s YPF and Italy’s Eni to explore joint participation in an integrated liquefied natural gas (LNG) project in Argentina.

The non-binding agreement, finalized on the sidelines of ADIPEC 2025, is aimed at developing a large-scale LNG facility that combines upstream gas production from Argentina’s Vaca Muerta shale basin with offshore liquefaction through floating LNG (FLNG) technology.

According to XRG, the first phase of the project is expected to deliver 12 million tonnes per annum (mtpa) of LNG capacity through two 6 mtpa FLNG vessels. The proposed development would be among South America’s most significant LNG ventures and marks XRG’s entry into the region’s energy market.

XRG said the partnership would leverage the technical and operational experience of all three companies. YPF brings expertise in Argentina’s unconventional gas production, while Eni contributes its extensive FLNG capabilities developed in Mozambique, where XRG is also a partner.

Leveraging experience

Mohamed Al Aryani, President of International Gas at XRG, said Argentina’s LNG potential could reshape regional gas dynamics.

“By joining forces with Eni’s world-class FLNG capabilities and YPF’s proven upstream leadership, we aim to set new benchmarks for innovation, scale, and reliability in the international gas market,” he said. “XRG is committed to delivering sustainable energy solutions that create lasting value for our shareholders, partners and communities.”

The agreement is part of XRG’s ongoing strategy to expand its international gas and LNG footprint. The company recently strengthened its position through investments in Mozambique’s Rovuma Basin, Block-1 in Turkmenistan, Arcius Energy in Egypt, Absheron in Azerbaijan, and the Rio Grande LNG project in the United States.

Industry observers say the move underlines XRG’s ambition to become a leading global gas player, diversifying ADNOC’s energy portfolio beyond the Middle East and into emerging LNG markets.

XRG, fully owned by ADNOC, focuses on natural gas, chemicals, and scalable energy solutions that support industrial growth and artificial intelligence infrastructure. Headquartered in Abu Dhabi, the company holds a mix of operating and non-operating stakes in assets that contribute to global energy security and economic development.

The partnership with YPF and Eni represents XRG’s latest step in establishing a presence in the Americas and signals growing collaboration between Gulf and Latin American energy producers in the next wave of LNG development.