YPF Partners with Eni and XRG for $20 Billion Argentina LNG Project

Argentine state oil company YPF has formalized agreements with Italy's Eni and Abu Dhabi's XRG to bring them into the upstream phase of the $20 billion Argentina LNG megaproject in Vaca Muerta. Under the deal, Eni and XRG will each acquire 32% of UPCO ARLNG I S.A.U., the special-purpose vehicle holding the key gas blocks, while YPF retains 36% Source: Clarín. The blocks—Meseta Buena Esperanza I and II, Aguada Villanueva Norte, and Las Tacanas I and II—will supply gas for two floating LNG units with a combined capacity of 12 million tons per year (MTPA) Source: Infobae (EFE).

Partnership Details

The transaction follows YPF's April acquisition of Pluspetrol's 50% stake in the same blocks via a swap, giving YPF full control before bringing in partners Source: Infobae. Eni, a leader in floating LNG with its Coral Sul project in Mozambique, views the entry as part of its strategy to diversify its gas portfolio and secure integrated LNG value chain access Source: Clarín. XRG, the international investment arm of ADNOC, already has LNG positions in the US, Azerbaijan, Turkmenistan, and Mozambique Source: Clarín.

Next Steps

The deal remains subject to approval from Neuquén province authorities. YPF CEO Horacio Marín stated that the partners' entry "strengthens the project's value chain and allows us to advance toward its global-scale development" Source: Infobae. The project is expected to seek final investment decisions from all three companies' boards by year-end, leveraging Argentina's RIGI large-investment incentive regime Source: Infobae.