Recently, XRG, the international investment branch of the energy sector owned by ADNOC, announced that it has signed a non-binding framework agreement with Argentine company YPF and Italian firm Eni to explore opportunities for participation in a comprehensive liquefied natural gas (LNG) project in Argentina.
This agreement marks a significant advancement in XRG’s strategy aimed at developing a leading global LNG portfolio and strengthening its presence across the Americas.
The Argentine LNG project is set to integrate the exploration, development, and production of gas from the Vaca Muerta shale play with its liquefaction using floating liquefied natural gas (FLNG) technology.
The initiative is expected to leverage the partners’ extensive experience in the development of floating LNG facilities, including Eni’s proven track record in Mozambique.
XRG is already a partner in the Rovuma Basin project and will bring its technical expertise, integrated commercial capabilities, and strong history of delivering innovative and reliable energy solutions to accelerate the success of the LNG project in Argentina.
The project’s first phase aims to produce an annual output of 12 million tons of LNG, distributed between two floating terminals, each with a production capacity of 6 million tons annually.
Mohammed Al Aryani, head of the international gas platform at XRG, stated, “Argentina possesses the potential and capabilities to redefine the liquefied natural gas sector.”
He further emphasized that by combining efforts with Eni’s world-leading floating LNG capabilities and YPF’s leadership in exploration, development, and production, they aim to set new benchmarks for innovation, expansion, and reliability in the global gas market.
This non-binding framework agreement was finalized during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2025), following XRG’s recent investments in the Rovuma Basin in Mozambique, the offshore Area 1 project in Turkmenistan, the Arqio Energy company in Egypt, the Absheron field in Azerbaijan, and the Rio Grande LNG project in the United States, reinforcing its ambition to become a global leader in the gas sector.