en.Wedoany.com Reported - XRG, the international investment platform of the Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates, together with Italy's Eni, has officially signed an agreement to acquire partial interests in three upstream gas blocks associated with an Argentine liquefied natural gas (LNG) export project. The three unconventional gas blocks involved in the transaction—Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas—are all located in Argentina's resource-rich Vaca Muerta shale basin. Under the newly signed agreement, XRG and Eni will each hold a 32% stake, while Argentina's state-owned oil company YPF retains the remaining 36% interest. A final investment decision (FID) for the project is expected in the second half of 2026.
The natural gas produced from these three blocks will primarily supply the Argentina LNG project. This is a large-scale upstream-midstream integrated project with a planned annual LNG production capacity of 12 million tons, aimed at positioning Argentina as a major global fuel exporter. The project will involve the construction of two floating LNG (FLNG) units, each with an annual capacity of 6 million tons, located in the Río Negro province of the Patagonian region.
For Eni and XRG, this partnership provides long-term access to one of the world's largest unconventional natural gas resources, further enriching their already highly diversified global gas asset portfolios. For the Argentine government, the project holds significant macroeconomic importance as a key measure to bolster the country's dollar reserves through energy exports. Currently, the administration led by Argentine President Javier Milei is advancing a $30 billion energy export transformation strategy centered on the Vaca Muerta shale basin to strengthen dollar reserves. Key projects under this strategy include:
The Vaca Muerta Sur (VMOS) pipeline project: With a total investment of $2.6 billion, this project aims to transport crude oil from the Neuquén basin to a new export terminal at Punta Colorada in Río Negro province.
The Southern Energy (SESA) project: SESA is a consortium of multiple energy companies planning to deploy floating LNG facilities, expected to generate approximately $2.5 billion in foreign exchange revenue annually.
Additionally, the Large Investment Incentive Scheme (RIGI), strongly promoted by the Milei government, is a key component of the Vaca Muerta development strategy. This scheme offers tax breaks, tariff incentives, and more relaxed export policies for up to 30 years to accelerate the construction of long-term energy infrastructure.
