Eni’s CEO, Claudio Descalzi, and the President and CEO of YPF, Horacio Daniel Marín, have signed a memorandum of understanding (MoU) to evaluate Eni’s participation in the liquefied natural gas (LNG) project in Argentina, promoted by YPF. The Argentina LNG project is a large-scale integrated development of upstream and midstream gas sectors, aimed at exploiting the resources of the onshore Vaca Muerta gas field in Argentina and exporting LNG to international markets.
The project, which could reach a production capacity of 30 million tons per year (MTPA) by the end of the decade, will unfold in multiple phases. The MoU signed between Eni and YPF focuses on a specific phase, which includes the development of upstream infrastructures, gas transportation facilities, and liquefaction facilities. This includes the installation of two floating LNG units (FLNG) with a capacity of 6 MTPA each, for a total of 12 MTPA.
Claudio Descalzi stated that YPF’s choice to make Eni a strategic partner was based on Eni’s particular expertise in FLNG projects, notably developed in Congo and Mozambique. This partnership is part of the recognition of Eni’s global leadership in implementing projects using this technology.
On his part, Horacio Daniel Marín expressed his satisfaction with the signing of this agreement, emphasizing that it would accelerate the timeline for the Argentina LNG project. He added that the project had sparked significant global interest, both from large production companies and from countries seeking to source gas from Vaca Muerta.
This MoU also aligns with Eni’s strategy to promote the energy transition by supporting the development of gas production while reducing emissions, aiming for carbon neutrality by 2050. It also seeks to address the security and competitiveness needs of energy supplies.
A strategic partnership to accelerate the development of Vaca Muerta
The Vaca Muerta gas field, located in the Neuquén region, is one of the largest global reserves of unconventional gas. This project fits within a global context where Argentina is aiming to maximize the exploitation of its energy resources to meet international demand. By focusing on LNG exports, Argentina aims to become a key player in the global gas market, particularly in Asia and Europe.
Eni and YPF thus align around the need to modernize and expand existing infrastructures, while implementing innovative solutions to minimize the carbon footprint of the project. The use of FLNG units will help reduce costs related to fixed infrastructures while optimizing the flexibility of production and export.
A key partnership for energy transition and supply security
The collaboration between Eni and YPF comes at a time of significant pressure on global energy supply chains. The global energy crisis, exacerbated by geopolitical uncertainties, is prompting many countries to diversify their natural gas supply sources. The Argentina LNG project could therefore play a strategic role in strengthening Argentina’s energy security and that of its commercial partners.
Both companies focus on optimizing the use of local resources while reducing the environmental impact of gas exploitation. This partnership marks a turning point in international cooperation in the energy sector, where technological innovation and energy efficiency have become essential priorities.
