YPF and Eni Join ADNOC’s XRG Arm to Advance Vaca Muerta LNG Export Project

SEATTLE (Oil Monster): Argentina’s state-owned oil company YPF and Italian energy giant Eni have entered into a strategic agreement with the Abu Dhabi National Oil Company’s (ADNOC) XRG investment arm to collaborate on a major liquefied natural gas (LNG) export initiative from Argentina’s Vaca Muerta shale formation. The project aims to deliver up to 12 million metric tons per annum (MMtpa) of natural gas to international markets.

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The agreement was formalized at the ADIPEC 2025 energy conference in Abu Dhabi. YPF and Eni had previously signed a head of agreement in June 2025, followed by a final engineering agreement in October, paving the way for gas exports from the Vaca Muerta field. Project partners are expected to finalize a technical agreement within the next month, with financing requirements estimated at $12.5 billion.

If successful, Argentina could generate up to $10 billion in annual revenue from LNG exports, which are expected to commence by mid-2030. Preliminary projections from YPF indicate the project could export 50 million cubic meters of natural gas per day, along with 100,000 barrels of oil and 150,000 barrels of liquefied petroleum gas.

The initiative encompasses the entire value chain, including production, processing, transportation, and liquefaction. LNG will be shipped via two floating liquefaction units (FLNG), each with a capacity of six million tons per year, highlighting a significant step in Argentina’s ambition to become a major LNG exporter.