In a significant step towards advancing Argentina’s energy sector, Claudio Descalzi, CEO of Eni, and Horacio Daniel Marín, President and CEO of YPF, the national energy company of Argentina, have signed a Memorandum of Understanding (MoU) to jointly assess Eni’s involvement in a critical phase of the Argentina LNG project. This large-scale initiative, spearheaded by YPF, aims to harness and commercialize the vast natural gas reserves of the "Vaca Muerta" onshore field, one of the most promising shale gas formations in the world.

The Argentina LNG project is a comprehensive and integrated gas development venture, encompassing both upstream and midstream operations. The ultimate objective is to export up to 30 million tons per year (MTPA) of liquefied natural gas (LNG) to international markets by the end of the decade. The current MoU outlines the collaboration between Eni and YPF to jointly evaluate a specific phase of this project, focusing on the development of upstream assets, transportation infrastructure, and liquefaction capabilities.

Specifically, the MoU covers the design and implementation of two Floating Liquefied Natural Gas (FLNG) units, each with a production capacity of 6 MTPA, resulting in a combined total capacity of 12 MTPA. These floating units offer a flexible and efficient solution for gas liquefaction, and Eni’s proven expertise in this technology—demonstrated through successful FLNG projects in Congo and Mozambique—was a key factor in YPF’s decision to engage the Italian energy company as a strategic partner.

Commenting on the agreement, Eni’s CEO Claudio Descalzi highlighted the significance of Eni’s global experience in FLNG projects, stating that YPF’s selection of Eni was a direct result of the company’s unique technological capabilities and leadership in executing complex liquefied natural gas projects. Horacio Daniel Marín, YPF’s President and CEO, expressed optimism about the collaboration, emphasizing that the partnership with Eni could significantly accelerate the timeline for the Argentina LNG project. He also noted the growing international demand for gas sourced from Vaca Muerta, both from major global energy companies and countries aiming to diversify their energy imports.

This agreement aligns closely with Eni’s broader strategic objectives, which include supporting the global energy transition by promoting natural gas development as a lower-emission energy source. It also reflects Eni’s commitment to achieving net zero carbon emissions by 2050, while contributing to global energy security and affordability. Through this MoU, both companies aim to leverage their complementary strengths to unlock the full potential of Argentina’s natural gas resources.