Eni, XRG take Vaca Muerta stakes to advance Argentina LNG project
(WO) — Eni and XRG have each agreed to acquire a 32% interest in three upstream blocks in Argentina's Vaca Muerta shale, joining operator YPF in advancing the integrated Argentina LNG project.
The agreements cover the Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas blocks. Upon completion, which remains subject to regulatory approvals, YPF will retain a 36% interest while Eni and XRG will each hold 32%.
The acquisitions build on the partners' previously announced joint development agreement for Argentina LNG and strengthen the upstream component of the integrated project, which is designed to monetize Vaca Muerta's unconventional gas resources through floating LNG export facilities.
The three blocks are expected to supply gas to two planned floating LNG units with a combined export capacity of 12 MMtpa, supporting Argentina's ambitions to become a major long-term LNG supplier.
For Eni, the investment expands its upstream gas portfolio while strengthening its position across the LNG value chain.
"Our entry into the 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," said Guido Brusco, Eni's chief operating officer for global natural resources.
For XRG, the acquisition establishes an upstream position in one of the world's largest unconventional gas basins and supports the company's strategy to build a globally diversified gas and LNG portfolio. The company said the investment complements its existing interests in LNG and gas developments in the United States, Azerbaijan, Turkmenistan and Mozambique.
"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," said Mohamed Al Aryani, president of international gas at XRG.
YPF Chairman and CEO Horacio Marín said the addition of Eni and XRG to the upstream portion of the project strengthens the Argentina LNG value chain and advances its development at a global scale.
The transaction marks another milestone for the Argentina LNG project as partners continue developing an integrated upstream and LNG export platform centered on Vaca Muerta, one of the world's largest unconventional gas resources.
