YPF, Adnoc's XRG, and Eni to Advance Argentina LNG Project

By Global Infrastructure Sherpa · Feb 13, 2026

Joint Venture GasOil Gas signed Argentina Feb 13, 2026

12 million tons per annum

Capacity

development

Stage

Argentina LNG

Project

Argentina's state oil company YPF, Italy's Eni, and Abu Dhabi National Oil Company's XRG have signed a binding joint development agreement to advance the Argentina LNG project. The project aims to reach a liquefied natural gas capacity of 12 million tons per annum. This deal marks XRG's formal inclusion, and the three companies will work towards a final investment decision in the second half of 2026. The project will unlock Argentina's Vaca Muerta shale basin and position the country as a long-term global LNG supplier.

Deal Analysis

YPF, Adnoc's XRG, and Eni have formalized their collaboration through a binding joint development agreement to advance the Argentina LNG project, targeting a substantial 12 million tons per annum LNG capacity. This agreement signifies XRG's formal entry into the project and sets the stage for a final investment decision expected in the second half of 2026. The project aims to unlock the vast potential of Argentina's Vaca Muerta shale basin, positioning the nation as a significant long-term player in the global LNG market. The Argentina LNG project represents a strategic move to capitalize on Argentina's abundant shale gas reserves. The involvement of YPF, Eni, and XRG, each bringing unique expertise and resources, underscores the project's scale and ambition. Successful execution of this project would not only transform Argentina's energy landscape but also contribute to global energy security by diversifying LNG supply sources.

Joint venture between YPF, Eni, and Adnoc's XRG.
Targets 12 million tons per annum LNG capacity.
Aims to unlock Argentina's Vaca Muerta shale basin.
Final investment decision expected in the second half of 2026.

Market Context: The global LNG market is experiencing increased demand, driven by energy security concerns and the transition to cleaner energy sources. Argentina's Vaca Muerta shale basin holds significant untapped gas reserves, making it a potentially important player in meeting this growing demand.