Eni, YPF Signed Agreement to Build New Liquefaction Facility

SEATTLE (Oil Monster): Argentina's YPF SA and the Italian multinational energy company Eni SpA have inked a deal to construct a new liquefaction facility that would enable the export of natural gas from Argentina's Vaca Muerta region.

At a ceremony in Rome, the two businesses inked the contract in front of Argentine President Javier Milei and Italian Prime Minister Giorgia Meloni. The contract's signing contributes to the two nations' growing diplomatic and economic partnership.

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The agreement represents a significant advancement in the development of the second-largest unconventional gas reserves in the world. The agreement calls for the transportation of Vaca Muerta natural gas to an Atlantic port in the province of Río Negro. It will then be transformed into LNG for export by floating liquefaction plants.

Two LNG vessels, each capable of processing six million tonnes annually, will be supplied by Eni. According to a statement from Eni, the project's first phase will have a total capacity of 12 million tons of LNG per annum (MMtpa) annually. The capacity is expected to increase by up to 30 MMtpa by 2030. It is anticipated that the exports will start by 2027 or 2028 and will bring in between $12 billion and $15 billion a year until 2050.