YPF and Eni signed an agreement in Italy and are making progress in the development of Argentine LNG

In a significant step toward transforming Argentina into a global player in the energy market, YPF and the Italian company Eni have signed a new agreement as part of the ambitious Argentina LNG project.

The agreement was signed in Rome by YPF's president and CEO, Horacio Marín, and his Eni counterpart, Claudio Descalzi, and sets out the necessary guidelines to reach the final investment decision in one of the project's central phases.

Argentine president Javier Milei and Italian prime minister Giorgia Meloni were present at the signing of the agreement.

"We're moving very quickly with Eni. We trust that before the end of the year we'll be able to reach the final investment decision and make this phase of the project a reality, which is key for the energy future of our country," said Marín, emphasizing the strategic importance of this initiative for both the national economy and Argentina's positioning in the global liquefied natural gas (LNG) market.

The signed agreement covers the production, treatment, transportation, and liquefaction of natural gas through floating units, with a total projected capacity of 12 million tons of LNG per year. This stage represents a concrete step within the Argentina LNG project, which seeks to monetize the vast unconventional gas resources of the Vaca Muerta formation in the province of Neuquén.

The importance of the project

The partnership with Eni, a global energy company headquartered in Italy and operating in more than 60 countries, strengthens the project's technical and financial viability. Eni is present throughout the entire energy value chain through its subsidiaries and has extensive experience in LNG initiatives around the world.

This progress marks a significant milestone in the country's energy policy, as it not only helps diversify the export matrix but also creates opportunities for investment, employment, and regional development.

Additionally, the ability to export gas in the form of LNG will allow Argentina to take greater advantage of its energy resources, improve its trade balance, and strengthen its energy security.

With this agreement, YPF reaffirms its commitment to the development and strategic growth of the hydrocarbon sector, aligned with the country's economic growth and energy transition objectives. The final investment decision expected before the end of the year could mark the beginning of a new stage of structural transformation for Argentina's energy sector.

Argentina LNG is a large-scale, comprehensive project that covers the entire gas value chain, from upstream (extraction) to midstream (processing and transportation). It's designed with the goal of supplying international markets and positioning Argentina as a reliable energy supplier. According to projections, the country could reach exports of up to 30 million tons of LNG annually by 2030, through different phases of development.