YPF and Eni sign an agreement with ADNOC’s XRG for the development of Argentina LNG project

YPF, Argentina and Eni, Italy have signed an agreement for the Abu Dhabi National Oil Company’s XRG Investment arm to participate in a liquefied gas project related to Argentina’s Vaca Muerta Field.

In a press release issued during the Abu Dhabi International Petroleum Exhibition and Conference, YPF CEO Horacio Martin said that the incorporation of XRG "strengthens a critical initiative for the future energy of the country" and will enable Argentina to become a "world class" LNG exporter.

Eni and the Argentinian oil company YPF have signed a final engineering contract in October for the export of gas from the Vaca Muerta Formation, the second largest unconventional natural gas resource in the world.

YPF leads the project. It involves the installation of floating liquefaction unit at a port within the Patagonian Province of Rio Negro. A pipeline will bring gas from Vaca Muerta in Neuquen province.

The project could generate around $20 billion in exports annually for Argentina. (Reporting and editing by Kyry Madry, Jan Harvey, and Leila Miller)

(source: Reuters)