en.Wedoany.com Reported - Eni and XRG will join the upstream portion of YPF's liquefied natural gas (LNG) project in the unconventional Vaca Muerta basin. The two companies stated in a release that they will each hold a 32% stake in three upstream blocks—Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas—all part of Argentina's unconventional Vaca Muerta basin.

YPF stated in a release that it will sell shares in UPCO ARLNG I, a company holding the Vaca Muerta gas blocks allocated to the project.

The transaction is subject to regulatory approvals. Upon completion, YPF will hold a 36% stake in the three upstream blocks, Eni 32%, and XRG 32%. The partners did not provide other details of the agreement.

Resources from these assets will be supplied via two floating LNG (FLNG) units, with a total liquefaction capacity of 12 million tonnes per year (mtpa), each unit having a capacity of 6 mtpa.

Earlier this year, XRG signed a binding agreement with YPF and Eni to join the 12 mtpa phase of the Argentina Integrated LNG project. Under the agreement, the partners will initiate front-end engineering and design (FEED) and related activities, including engineering, technical architecture, and key commercial and financing workstreams.

According to YPF CEO Horacio Marin, the three companies are also evaluating adding a third FLNG to further expand the capacity of the 12 mtpa phase of the Argentina Integrated LNG project. Marin stated that the partners aim to reach a final investment decision (FID) in 2026. The first FLNG unit is expected to commence commercial operations in 2030, and the second unit in 2031. This large-scale integrated gas and liquefaction project will develop Argentina's Vaca Muerta shale basin and help the country become a long-term global LNG supplier.

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