ADNOCS XRG Joins Eni and YPF in Major Argentinian LNG project
A division of Abu Dhabi National Oil Company (ADNOC), XRG, is partnering with Italian energy giant Eni and Argentinian state-owned oil company YPF to develop a significant new Liquefied Natural Gas (LNG) project in Argentina. The project, known as ARGLNG, is focused on exporting natural gas to the international market and leverages the substantial resources of the Vaca Muerta shale formation.
The energy sector increasingly relies on joint ventures and strategic partnerships to navigate the complexities of large-scale projects, especially in the gas sector where cross-border infrastructure is often essential. This collaboration brings together the specialized expertise of each company to overcome challenges and accelerate development.
Eni, YPF, and XRG have signed a binding agreement to develop the integrated upstream and midstream gas project. The plan aims to produce up to 30 million tonnes of LNG annually in phases by 2030. A Joint Development Agreement (JDA) is slated to be signed, allowing each company to contribute its strengths to the project. A final technical description was previously signed between Eni and YPF in October.
ARGLNG will encompass the processing and all related phases of gas production for export. The project will utilize two floating gas liquefaction units (FLNG) with a combined capacity of 6 million tonnes per annum (MTPA).
Mohamed Al Aryani, President of International Gas at XRG, stated, “Argentina’s LNG potential is truly transformative. By joining forces with Eni’s world-class FLNG capabilities and YPF’s proven upstream leadership, we aim to set new benchmarks for innovation, scale, and reliability in the international gas market. XRG is committed to delivering enduring energy solutions that create lasting value for our shareholders, partners and communities.”
this development occurs amidst significant growth in the global LNG sector, with companies like Shell also advancing projects in regions like Nigeria. the global energy market is demonstrating a shift in focus towards gas production, signaling a potential new era for the international gas trade. the project also comes at a time of economic recovery for Argentina, following a recent substantial financial boost.
