Italian energy company Eni and Argentina’s state-run oil company YPF have finalised an agreement to collaborate on a liquefied natural gas (LNG) project being developed in the South American nation.
The deal follows a memorandum of understanding (MOU) signed in April 2025 and represents a further strategic step towards the maturation of the $50bn (59.25trn pesos) LNG project.
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The agreement was signed in the presence of Argentine President Javier Milei and Italian Prime Minister Giorgia Meloni, outlining the steps towards a final investment decision (FID) for the phase of the project that includes gas production, treatment, transportation and liquefaction through floating units.
The Argentina LNG project aims to develop the resources of the onshore Vaca Muerta field and is set to have a total capacity of 12 million tons per annum (mtpa) of LNG.
Due to be developed in a phased approach up to 30mtpa of LNG by 2030, Argentina LNG project will also serve international markets.
Eni said its selection as a strategic partner for the project was attributed to its expertise in floating LNG projects such as those in Congo and Mozambique, and also in constructing projects with similar technological requirements.
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By GlobalDataIn December 2024, YPF, alongside Shell, signed a project development agreement to advance the Argentina LNG project.
The $50bn initiative is considered the nation’s premier LNG project, focusing on the liquefaction of gas for international export.
The project includes the extraction of gas from Vaca Muerta and the construction of a 580km pipeline network to a processing and liquefaction facility in Sierra Grande, Rio Negro, on the Atlantic coast.
