Partners Advance Vaca Muerta-Linked Argentina LNG Export Development

Why It Matters

The project could unlock billions in investment, diversify Argentina’s export base and add a new source of supply to the tightening global LNG market.

Key Takeaways

• YPF, Eni, XRG sign binding joint development agreement
• Project targets 12 MMtpa via two FLNG units
• FEED and financing work to start immediately
• Final investment decision aimed for late‑2026
• Positions Argentina as potential major LNG exporter

Pulse Analysis

Vaca Muerta, Argentina’s flagship shale formation, holds an estimated 16 trillion cubic feet of recoverable gas, making it one of the world’s largest unconventional resources. After years of stalled attempts to commercialize its output, the recent joint development agreement signals a decisive shift toward monetizing this reserve. By integrating upstream production with downstream liquefaction, the consortium aims to overcome historic infrastructure bottlenecks that have limited Argentina’s gas export potential.

The choice of floating LNG (FLNG) technology is central to the project’s appeal. Two FLNG vessels, each capable of processing six million tonnes annually, eliminate the need for costly onshore liquefaction plants and extensive pipeline networks. This modular approach accelerates the path to commercial operation, aligns with the targeted final investment decision in late‑2026, and offers flexibility to scale output as market conditions evolve. Early‑stage engineering and financing activities are now underway, positioning the venture to secure the capital required for a multi‑billion‑dollar build‑out.

Globally, LNG demand is projected to rise as buyers seek cleaner‑burning fuels and hedge against geopolitical volatility. Argentina’s entry into the export market could reshape supply dynamics, especially for buyers in Europe and Asia looking for Southern Hemisphere sources. The project also enhances the country’s fiscal outlook, promising job creation and technology transfer. However, success hinges on securing financing, navigating regulatory approvals, and managing price volatility, factors that will determine whether Argentina can truly become a major LNG player.

Partners advance Vaca Muerta-linked Argentina LNG export development

February 12, 2026

YPF, Eni and XRG have signed a binding joint development agreement (JDA) to advance the proposed Argentina LNG project, marking a key step toward a final investment decision and positioning the country to become a major global liquefied natural gas exporter.

The large‑scale integrated gas and liquefaction development is designed to monetize resources from Argentina’s Vaca Muerta shale and support long‑term LNG exports. The project is expected to deliver total liquefaction capacity of 12 million tonnes per year through two floating LNG (FLNG) facilities, each with a capacity of 6 MMtpa.

The agreement establishes a work program for the next phase of development, including front‑end engineering design (FEED), technical studies and commercial structuring. The partners will also advance financing and project‑definition activities as they target a potential final investment decision in the second half of 2026.

Argentina LNG is planned as a fully integrated development encompassing upstream production, gas processing, transportation and liquefaction infrastructure. Project sponsors say the development is intended to unlock large‑scale investment, expand export capacity and support Argentina’s emergence as a long‑term LNG supplier to global markets.

The addition of XRG as a project partner alongside YPF and Eni expands the consortium’s technical and financial capabilities as development progresses. The partners said the agreement represents another milestone in advancing one of the most significant proposed LNG export projects linked to South America’s growing unconventional gas resource base.