YPF and XRG, a subsidiary of ADNOC, have signed an agreement to collaborate on the Argentina LNG project. This strategic alliance will allow for the development of a world-class LNG export platform with a transformative impact on employment, investment, and international positioning. The agreement, signed at the ADIPEC 2025 fair in Abu Dhabi, marks a significant step in YPF's export plan. Previously, on October 10, the company signed the final investment decision (FID) with the Italian company ENI. YPF is also in talks with Shell, with which it has already signed a memorandum of understanding, and with a fourth supermajor, potentially Saudi Aramco. YPF highlighted that this "framework agreement" with ADNOC's XRG "represents a new advance in the development of the Argentina LNG project, which is part of the Plan 4x4 that seeks to transform YPF into a 'world-class shale' company and a major hydrocarbon exporter by 2031." The Argentina LNG project involves an integrated solution combining gas production in Vaca Muerta with liquefaction using Floating Liquefied Natural Gas (FLNG) technology.
"The incorporation of XRG into the Argentina LNG project strengthens a key initiative for the country's energy future," said YPF's President and CEO. "This collaboration with these partners reinforces YPF's international positioning and accelerates the path towards a more competitive LNG export platform." XRG is ADNOC's international investment arm, established to drive the company's global expansion in the energy sector. With an enterprise value of over $80 billion, XRG aims to double its assets in the next decade. Its operations include acquisitions and management of international stakes, such as Next Decade Rio Grande LNG in the USA, the Area 4 block in the Rovuma Basin in Mozambique, and several gas investments in Turkmenistan and Egypt.
This alliance is a milestone for YPF, adding one of the most relevant players in the global energy sector. The first phase of the project has a production capacity of 12 million tons per annum (MTPA) of LNG through two vessels of 6 MTPA each, expandable to 18 MTPA.
