Italian energy giant Eni and Argentina’s state oil firm YPF have formally signed an agreement to jointly develop the Argentina LNG project—marking a key step forward in one of South America’s most ambitious energy ventures.
The agreement builds on a Memorandum of Understanding (MoU) signed in April and outlines a roadmap toward final investment decision (FID) for the mega-project, which is projected to cost $50 billion.
According to Eni, the deal covers critical development phases including the production, treatment, and liquefaction of natural gas using floating LNG units, targeting an initial capacity of 12 million tonnes per annum (tpa).
The project will be developed in phases, with plans to expand capacity to 30 million tpa by 2030, making it one of the largest LNG ventures globally. Gas will be sourced from Argentina’s Vaca Muerta shale formation—one of the world’s largest unconventional gas reserves—and aimed at supplying international markets.
The partnership reflects growing interest in Latin America’s energy potential amid global efforts to diversify gas supplies.
