YPF's XRG and ADNOC XRG sign agreement to advance Argentina LNG Project
Argentine's state oil company YPF, Italy’s?Eni, and Abu Dhabi National Oil Company’s international investments arm XRG'signed a binding 'joint 'development 'agreement' to advance Argentina LNG. The project is expected to achieve a liquefied gas capacity of 12,000,000 tons per year, XRG stated in a Thursday statement.
In a statement, YPF's CEO Horacio Martin said that the deal marked XRG’s formal inclusion. The three companies would work together to reach a?final investment decision by the second half 2026.
The statement stated that "this large-scale integrated liquefaction and gas project will unlock Argentina's Vaca Muerta shale and help position?Argentina as a?"long-term global LNG supply,"
The Vaca-Muerta formation, located in western Argentina, is responsible for most of the oil produced by the country. However, only a small portion of this huge formation has been developed. This is vital to Argentina's future economic growth and to the government of President Javier Milei, who needs to boost the country's energy exports in order to build confidence and bolster Argentina’s dollar reserves.
The deal will help Abu Dhabi achieve its stated goal of achieving a?20-25 mtpa LNG capacity by the year 2035. XRG's mission was to 'hunt for acquisitions' in 'natural gas, chemicals, and 'energy solutions'. It acquired Germany's Covestro, and merged its polyolefins division with Austria's OMV.
(source: Reuters)
