YPF has advanced plans to scale Argentina’s LNG ambitions by signing a preliminary agreement with ENI and XRG, the international investment arm of UAE energy major ADNOC. The move, formalized in Abu Dhabi during ADIPEC 2025, opens negotiations for XRG to join the Argentina LNG platform an export initiative pairing Vaca Muerta gas with floating liquefaction (FLNG) technology and targeting up to 18 million tonnes per annum (mtpa).
The project’s first phase envisions two FLNG units delivering a combined 12 mtpa, with a pathway to 18 mtpa as additional capacity comes online. For Argentina, it’s a bid to convert shale gas abundance into stable dollar inflows, while positioning LNG as a transitional fuel that can displace coal and complement variable renewables in key import markets.
“This agreement marks a strategic step for Argentina’s energy future,” said Horacio Marín, President and CEO of YPF. “Bringing XRG into the project strengthens a world‑class LNG export platform with meaningful impacts on investment, jobs, and Argentina’s global positioning.”
A Scalable LNG Platform with FLNG
The Argentina LNG concept integrates upstream gas from Vaca Muerta, new large-diameter gas pipeline capacity, and modular FLNG units to compress timeframes and reduce onshore complexity. The initial setup calls for:
A separate, earlier phase led by Pan American Energy (with Golar, YPF, Pampa Energía, and Harbour Energy) has already reached FID and targets start-up in 2027 from Río Negro using two liquefaction ships (~6 mtpa).
A Calculated Move Amid Energy Transition Tailwinds
The pre-agreement arrives as Argentina’s hydrocarbon sector gains momentum. In the first nine months of 2025, the country posted a US$5.368 billion energy trade surplus on 13% higher exports and a 21% drop in imports. Infrastructure is also moving: welding on the Vaca Muerta Sur oil pipeline has been completed, with private forecasts pointing to >US$15 billion per year in oil export potential from 2027 at current prices. On LNG, industry projections suggest Argentina could surpass US$30 billion in annual exports by 2030 if capacity and market conditions align.
For investors and buyers focused on decarbonization, the project’s climate credibility will hinge on methane management, electrification options for liquefaction where feasible, and transparent emissions certification across the value chain.
Financing, Partners, and Timeline
What This Means
Argentina is positioning Vaca Muerta as a globally relevant, modular LNG supply hub backed by tier‑one partners and growing export infrastructure. If executed to plan with strong methane controls and credible emissions pathways the platform could deliver near‑term decarbonization benefits for coal-to-gas switching markets while strengthening Argentina’s external accounts and energy security.
Independent outlooks remain constructive: Wood Mackenzie views Vaca Muerta as the largest unconventional resource outside North America, and Rystad expects associated FLNG deployments to peak toward the late 2030s.
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