Eni S.p.A. E has signed a memorandum of understanding (MoU) with Argentina’s state energy giant YPF Sociedad Anonima YPF, marking its potential involvement in the $50 billion Argentina LNG project — one of the most ambitious energy projects in South America. The agreement was signed during the official visit of Argentina’s president Javier Milei to Rome.

Eni Brings FLNG Expertise to Argentina LNG’s First Phase

The MoU focuses on the project’s initial development stage, which includes upstream, transportation and gas liquefaction infrastructure. Specifically, it covers two floating LNG (FLNG) units with a combined capacity of 12 million tons per annum (tpa). These units form the first phase of the broader Argentina LNG plan.

Eni CEO Claudio Descalzi emphasized the company’s unique value proposition, stating that YPF selected Eni due to its “distinctive know-how” in FLNG, citing recent success in Congo and Mozambique.

YPF Seeks Acceleration With Eni Partnership

YPF CEO Horacio Marin expressed support for Eni's involvement, viewing the partnership as a means to speed up the project's timeline. He noted growing global interest in gas from Vaca Muerta, both from major producers and potential buyers.

Three-Phase LNG Vision to Unlock 30 Million tpa

Argentina LNG is structured in three phases. After the initial two FLNG units, the second phase entails building a 10 million tpa onshore liquefaction plant in Sierra Grande, Rio Negro province. The third phase will expand that facility with additional trains to push output by another 10 million tpa.

This modular approach aims to elevate Argentina’s LNG export capacity to 30 million tpa by the end of the decade, placing it among the world’s key LNG suppliers.

Vaca Muerta: Argentina’s Shale Crown Jewel

At the heart of this project is the Vaca Muerta shale formation, which holds an estimated 308 trillion cubic feet of recoverable gas reserves. As the world’s second-largest shale gas deposit, it offers Argentina a transformative export opportunity.

YPF and Shell, the existing 50:50 developers of the Argentina LNG project, are expected to issue the front-end engineering and design (FEED) tender for the first onshore liquefaction unit by August. The FEED process is anticipated to run for 10 months, leading to a final investment decision and EPC contract by mid-2026.

With global LNG demand rising, Eni’s involvement in Argentina’s gas ambitions signals a strategic shift in its international portfolio and further strengthens ties between Italy and Argentina.