XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), announced that it has signed a joint development agreement (JDA) with Italian oil giant Eni and Argentine energy giant YPF to promote the LNG sector in South America.
Under the JDA, these companies will work on developing integrated gas and liquefaction projects. Once completed, the project will unlock Argentina’s Vaca Muerta shale basin and help position the country as a long-term global LNG supplier.
Argentina LNG is expected to deliver 12 million tonnes per annum (mtpa) of LNG capacity through two floating LNG facilities with a capacity of 6 mtpa each. The project is designed to include production, processing, transportation and LNG export infrastructure.
The JDA marks a new milestone for the project and establishes a work plan for stakeholders to move on to the next stage of development. Under the agreement, the partners will begin front-end engineering design (FEED) and related activities including engineering, technical structuring, and key commercial and financial workstreams.
Mohamed Al Alyani, President of International Gas at XRG, said: “The potential for Argentine LNG is huge and this agreement marks an important milestone in the development of the project. YPF, Eni and XRG share the ambition to advance large-scale LNG projects that support reliable and flexible energy supplies to international markets, while creating long-term value for partners and local communities.”
Horacio Marín, President and CEO of YPF, said: “This new step marks the formal integration of XRG into the project we have been co-developing with Eni. With these two world-class players, we are able to position Argentina LNG as one of the world’s leading LNG projects. We will continue to work very intensively to achieve FID in the second half of 2026.”
Guido Brusco, Chief Operating Officer of Eni Global Natural Resources, said: “With the joint development agreement, our new partner XRG joins Argentina LNG. Argentina LNG is emerging as one of the most promising opportunities in the global gas landscape.”
“This project is taking shape in a way that reflects both our technical leadership and our strategic vision,” he added.-TradeArabia News Service
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