Argentina's state-owned YPF, Italian energy major Eni, and XRG, the international investments arm of Abu Dhabi National Oil Company (Adnoc), have formalized their partnership for the Argentina LNG project. On February 12, 2026, the companies signed a binding Joint Development Agreement (JDA) to advance the large-scale integrated gas and liquefaction initiative. This agreement formally incorporates XRG into the project, which aims to unlock Argentina’s Vaca Muerta shale basin and establish the country as a significant long-term global LNG supplier.
The Argentina LNG project is designed to deliver 12 million tons per annum (mtpa) of LNG capacity through two floating LNG facilities, each contributing 6 mtpa. The comprehensive infrastructure will include production, processing, transportation, and LNG export capabilities. The signing of the JDA marks a crucial step, establishing the workplan for the next development phase, which includes Front-End Engineering Design (FEED), technical structuring, and commercial and financing workstreams.
According to Horacio Marín, President and CEO of YPF, the inclusion of XRG significantly strengthens the project, positioning it among the leading global LNG initiatives. The partners are now intensely focused on reaching a Final Investment Decision (FID) during the second half of 2026. Mohamed Al Aryani, President of International Gas at XRG, emphasized the project's potential to provide reliable and flexible energy to international markets, while also creating long-term value, investment, and employment opportunities within Argentina. This move aligns with XRG's strategic goal to achieve 20-25 million mtpa of LNG capacity by 2035.
Guido Brusco, Eni's Chief Operating Officer Global Natural Resources, highlighted that with XRG joining, Argentina LNG is emerging as one of the most promising opportunities in the global gas landscape, reflecting both technological leadership and a strategic vision. The project is expected to bring substantial investment and boost Argentina's energy export capabilities, reinforcing President Javier Milei's government's efforts to strengthen the country's economic future by increasing energy exports and bolstering crucial dollar reserves. Previous plans for an onshore plant were abandoned in favor of floating liquefaction units after some international companies, including Malaysia's Petronas and England's Shell, previously left the project.
