30/06/2026 03:58 - Economia
YPF, Argentina's flagship energy company, has achieved a historic milestone for the national industry by signing definitive agreements with Italian energy giant Eni and Abu Dhabi-based XRG (a subsidiary of ADNOC). Together, they will develop the Argentina LNG project, a decisive step in transforming the vast Vaca Muerta formation into a world-class export hub.
The operation involves the transfer of shares in the vehicle company UPCO ARLNG I S.A.U., which will hold the titles to three non-conventional gas blocks in Vaca Muerta.
The central objective is to supply a projected capacity of 12 million tons per annum (MTPA) of Liquefied Natural Gas (LNG). To achieve this, two Floating Liquefied Natural Gas (FLNG) units will be installed, each with a capacity of 6 MTPA.
For those unfamiliar, Vaca Muerta is one of the world's largest shale oil and gas reservoirs, located in the Neuquén Basin of southwestern Argentina. The resources fueling this ambitious project will come from three strategic blocks previously consolidated by YPF through an asset swap with Pluspetrol on April 30, 2026.
| Block Name | Area (km²) | Gas Type | Key Feature |
|---|---|---|---|
| Las Tacanas I & II | 323 | Dry Gas | South of Rincón del Mangrullo. |
| Aguada Villanueva Norte | 50 | Condensate Gas | Presence of condensates. |
| Meseta Buena Esperanza I & II | 303 | Rich Gas | Potential for liquid derivatives. |
Note: Regulatory viability for upstream activities in wet gas areas required national adjustments in late 2025, allowing projects with associated liquid derivatives to fall under the Large Investment Incentive Regime (RIGI).
"We are taking another step in the development of Argentina LNG. The entry of Eni and XRG into the upstream strengthens the project's value chain and allows us to advance towards its global scale development."
"Argentina has the potential to play an increasingly important role in meeting growing global natural gas demand, and projects like Argentina LNG will be key to seizing that opportunity. Vaca Muerta is one of the most attractive gas resources in the world."
"Vaca Muerta is one of the world's richest unconventional basins in terms of resources: our participation positions us across the entire value chain, from the Argentine upstream to LNG supply to international clients, generating value while contributing to global energy security."
The consortium's schedule includes immediate progress on technical phases with the goal of formalizing the Final Investment Decision (FID) by the end of 2026.
The project integrates extraction in the Neuquén Basin with pipelines and terminal plants to transform the fluid into export-grade LNG.
Previous estimates indicate the integral phase will require significant disbursements.
Investment in midstream and ports: approximately US$ 16 billion.
Investment in upstream: approximately US$ 12 billion.
The project is framed within the Large Investment Incentive Regime (RIGI), a special Argentine legal framework. It offers benefits such as a reduction of Income Tax to 25%, exemption from export duties after 3 years, free availability of foreign currency after 3-4 years, and 30 years of regulatory stability.
Furthermore, as of June 29, 2026, the RIGI reduces the breakeven point for projects: from US$51/b to US$48/b for standalone wells, and from US$61/b to US$57/b for complete projects. Total planned investment under this regime could reach between US$55 billion and US$60 billion.
For XRG, a subsidiary of the state-owned ADNOC of Abu Dhabi, this transaction represents its direct entry into the Argentine unconventional basin. The Arab firm stated that the investment aligns with its global natural gas and LNG expansion strategy, adding to a portfolio that includes stakes in projects in the United States (Rio Grande LNG), Azerbaijan (Absheron field), Turkmenistan, and Mozambique.
Meanwhile, Eni noted that the contract signing responds to its corporate strategy of geographical diversification and strengthening of its equity natural gas and LNG portfolio.
Sources: Clarín, Econojournal.
Alfredo S. Quiroga
