Eni enters the upstream of the Argentina LNG integrated project

Eni has signed a Sale and Purchase Agreement (SPA) to acquire a 32% stake in three upstream blocks—Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas—located within Argentina's unconventional Vaca Muerta basin.

The transaction, which is subject to regulatory approval, will result in a joint ownership structure comprising YPF with a 36% interest, while Eni and XRG will each hold a 32% stake in the three blocks.

The assets will form part of the integrated Argentina LNG development, a combined upstream and midstream project designed to unlock the vast natural gas resources of the Vaca Muerta formation and strengthen Argentina's long-term position as a global LNG supplier. Gas produced from the three blocks is expected to supply 12 million tonnes per annum (MTPA) of LNG capacity through two floating LNG (FLNG) units, each capable of producing 6 MTPA.

Eni Chief Operating Officer Global Natural Resources, Guido Brusco, commented: “Our entry into Vaca Muerta unconventional basin, alongside YPF and XRG, strengthens Eni’s ability to develop world-scale gas resources and convert them into competitive LNG for international markets. 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 Argentine upstream to the supply of LNG to international customers, creating value while contributing to global energy security."

Mohamed Al Aryani, President of International Gas, XRG, said: “Argentina has the potential to play an increasingly important role in meeting the world’s growing demand for natural gas, and projects such as ARGENTINA LNG will be important to unlocking that opportunity. Vaca Muerta is one of the world’s most attractive gas resources, and this proposed transaction gives XRG a direct role in helping advance a project with the scale, quality and long-term potential to become a significant new source of reliable LNG supply for global markets. We are also pleased to be partnering with YPF, a highly capable and strategic partner with deep expertise in Argentina’s energy sector and a leading role in developing Vaca Muerta, and with Eni a leading developer of Floating LNG projects.”

“We are taking another step forward in the development of Argentina LNG. The entry of Eni and XRG into the upstream segment strengthens the project’s value chain and allows us to move toward its development on a global scale,” said Horacio Marín, Chairman and CEO of YPF.

The acquisition marks another major milestone in the advancement of the Argentina LNG project and aligns with Eni’s strategy to strengthen and diversify its upstream natural gas portfolio. It also supports the company’s focus on developing integrated projects across the energy value chain, expanding its LNG marketing portfolio, and enhancing the security, reliability, and competitiveness of global energy supplies.