Development agreement advances Argentina LNG towards FID

Argentina’s YPF, Italy’s Eni and XRG, headquartered in Abu Dhabi, United Arab Emirates, have signed a binding joint development agreement (JDA) on 12 February 2026, to advance Argentina LNG’s Vaca Muerta project.

The project’s foundational partners said the agreement sets out a workplan for the next stage of development.

Under the JDA, the partners will start front-end engineering design and related activities, covering engineering, technical structuring, and the key commercial and financing workstreams.

Argentina LNG is expected to deliver 12M tonnes per annum (mta) of LNG capacity through two floating LNG facilities, each with a capacity of 6 mta. The project is designed to include production, processing, transport and LNG export infrastructure.

YPF president and chief executive officer Horacio Marín said, “We will now continue working very intensively to reach FID during the second half of 2026”.

Eni chief operating officer global natural resources Guido Brusco linked the signing to the entry of XRG into the partnership and characterised the opportunity set around the project, saying, “With the JDA, a new partner, XRG, joins Argentina LNG, which is emerging as one of the most promising opportunities in the global gas landscape.”

XRG president, international gas, Mohamed Al Aryani, set out how the partners describe the project’s market role, saying it will support “reliable, flexible energy supply to international markets”.