YPF, Eni sign project development agreement for Argentina LNG
Argentina’s YPF SA and Italy’s ENI SpA signed a project development agreement today in Rome, advancing collaboration on the Argentina LNG export project, underpinned by natural gas from the Vaca Muerta shale formation.
The agreement, which builds on a memorandum of understanding signed in April, is a step toward a final investment decision (FID) that could be finalized by yearend, said YPF chief executive officer Horacio Marín.
The project envisages transporting natural gas from Neuquén basin to a coastal site in Río Negro, where it will be liquefied using floating liquefaction vessels (FLNG) for overseas export. ENI would initially provide two FLNG units with a combined capacity of 12 million tonnes/year.
YPF has also signed a similar agreement—pending FID—with Shell plc. In parallel, the Southern Energy consortium, which includes Pan American Energy, YPF, Pampa Energía, Wintershall Dea, and Golar LNG, has executed contracts with Golar to supply two FLNG units for the Argentina LNG project (OGJ Online, July 5, 2024; Dec. 23, 2024).
Vaca Muerta holds the world’s second-largest reserves of unconventional gas. YPF estimates LNG exports could begin by 2027.
Camilo Ciruzzi | South America Correspondent
Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.