YPF SA and Eni SPA have partnered with XRG, Abu Dhabi National Oil Co.’s (ADNOC) international investment arm, in the continued development of Argentina LNG, a project to liquefy Vaca Muerta natural gas production and export it from the Atlantic coast at Río Negro, Patagonia.
The deal, announced during ADIPEC 2025, sets a 30-day window to define ADNOC’s participation terms and targets final investment decision (FID) in first-half 2026. Construction is expected to start in 2027, with first exports in 2030.
Phase 1 will include 12 million tonnes/year (tpy) of capacity through two 6-million tpy floating LNG (FLNG) plants, with potential Phase 2 expansion to 18 million tpy. YPF estimates the revenues of $10 billion/year for at least 20 years based on roughly 12 million tpy of LNG sales along with 100,000 b/d or associated crude and another 150,000 b/d of LPG.
Total investment is pegged at $25-30 billion, at least $12.25 billion of which will come from outside debt. Of the total, $16-17 billion will go to infrastructure such as pipelines, port, and midstream infrastructure, and $10-12 billion to upstream development in Neuquén’s shale blocks that will feed the system.
Argentina's energy future
YPF chief executive officer and president Horacio Marín said that “XRG’s [involvement] strengthens a key initiative for Argentina’s energy future. This strategic alliance allows us to move forward with a world-class LNG export platform that will be transformational in terms of jobs, investment, and Argentina’s global positioning.”
The project is expected to qualify under Argentina’s Large Investment Incentive Regime (RIGI) to secure fiscal, customs, and foreign-exchange stability. Its rollout depends on three regulatory milestones under discussion with national and provincial governments: full RIGI implementation, a provincial LNG law in Río Negro, and the formal awarding of gas concessions in Neuquén. Marín called this the “real bottleneck,” stressing that long-term success requires “legal certainty to sustain 20 years of exports.”
Ernesto Díaz, senior vice-president for Latin America at Rystad Energy, said: “This is the biggest business deal in Argentina’s history that I can recall. It’s the spearhead of a process that’s going to put the country squarely on the global economic map. The impact will unfold over time — deep and lasting.”
After signing, Mohamed Al Aryani, XRG’s president of international gas, said that “Argentina’s LNG potential is truly transformative.”
For YPF, bringing in ADNOC, and ENI before it, consolidates the Argentine operator’s 4x4 Plan—its roadmap to become a world-class shale operator by 2031—and positions Argentina as a structural LNG exporter.
“The entry of XRG strengthens a key initiative for the nation’s energy future and speeds up the build-out of a world-class LNG export platform, with major impact on jobs, investment, and international standing,” Marín said — a message he often sums up with a phrase that’s become his trademark in the sector: “It’s with hydrocarbons — not without them.”
