XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC) said it has signed a joint development agreement (JDA) with leading Italian petroleum company Eni and Argentinian energy major YPF to advance the South American nation's LNG sector.

Under the JDA, these firms will work towards the development of an integrated gas and liquefaction project that will, on completion, unlock Argentina’s Vaca Muerta shale basin and help position the country as a long-term global LNG supplier.

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

The JDA marks another milestone for the project, establishing the workplan for the parties to progress through the next stage of development. Under the agreement, the partners will commence Front-End Engineering Design (FEED) and related activities, including engineering, technical structuring and key commercial and financing workstreams.

Mohamed Al Aryani, President, International Gas at XRG said: "Argentina LNG’s potential is significant, and this agreement marks an important milestone in the project’s development. YPF, Eni and XRG share the ambition to progress a large-scale LNG project that supports reliable, flexible energy supply to international markets while creating long-term value for partners and local communities."

Horacio Marín, President and CEO of YPF, said: "This new step marks the formal inclusion of XRG into the project we have been developing together with Eni. These two world-class players allow us to position Argentina LNG as one of the leading LNG projects globally. We will now continue working very intensively to reach FID during the second half of 2026."

Guido Brusco, Eni Chief Operating Officer Global Natural Resources, said: "With the Joint Development Agreement a new partner – XRG – joins Argentina LNG, which is emerging as one of the most promising opportunities in the global gas landscape."

"This project is taking shape in a way that reflects both technological leadership and strategic vision," he added-TradeArabia News Service