XRG backs Argentina's push to become global LNG supplier
- First phase designed to produce 12 million tonnes per annum (12 Mtpa).
- In June 2026 XRG and Eni agreed to each acquire 32% of three YPF-operated Vaca Muerta blocks; YPF retains 36% pending approvals.
- Vaca Muerta is described as the world's second-largest shale gas and fourth-largest shale oil resource.
- Project could support more than 40,000 jobs and bring billions in export earnings to Argentina.
Overview
At Argentina Week in Paris, XRG Executive Chairman Dr. Sultan Al Jaber said XRG is backing Argentina's ambition to become a major new LNG supplier, citing the scale and quality of Vaca Muerta, an improving investment environment and proven local operating capability.
Partnership and assets
YPF, Eni and XRG are partnering to bring Argentina's gas to global markets. In June 2026 XRG and Eni each agreed to acquire a 32% interest in three YPF-operated Vaca Muerta blocks (Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas); YPF will retain 36% and completion is subject to customary regulatory approvals. Eni brings floating LNG delivery experience, YPF brings local shale expertise, and XRG offers long-term capital, market access and ADNOC-derived operating capabilities.
Project scope and economic impact
The first phase of Argentina LNG is designed to produce 12 million tonnes per annum. Dr. Al Jaber emphasised that success will be measured by value retained in Argentina — export earnings, business for local suppliers and skilled jobs — estimating more than 40,000 jobs and billions flowing back into the economy.
Strategic context
Supporters point to Vaca Muerta's world-class resource ranking, recent reforms including the RIGI investment framework, and deepening UAE–Argentina ties, including talks on a Comprehensive Economic Partnership Agreement. XRG says the project fits its ambition to become a top-five global gas player and to establish Latin America as a growth region within its portfolio.
Source: XRG