Abu Dhabi-based XRG and Italy’s Eni are expanding their footprint in Argentina’s fast-growing energy sector after striking separate agreements with state-controlled oil producer YPF to take minority positions in three strategic upstream assets tied to the country’s flagship LNG ambitions.
Under the agreements, XRG and Eni will each hold a 32% interest in the Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas blocks, while YPF will retain the remaining 36% ownership.
The assets are located within the prolific Vaca Muerta shale formation, one of the world’s largest unconventional hydrocarbon resources. Production from these blocks is expected to underpin Argentina LNG, an integrated upstream and midstream development designed to transform the country’s abundant shale gas reserves into export-ready liquefied natural gas.
The planned venture aims to develop LNG export capacity of around 12 million tonnes per year through floating liquefaction facilities, with gas supplied directly from the newly acquired upstream acreage.
Although the companies did not disclose the financial terms of the transactions, the investment signals growing international confidence in Argentina’s long-term gas export potential.
For Argentina, the LNG initiative represents a cornerstone of its broader energy strategy. The government is seeking to leverage Vaca Muerta’s vast resources to increase export revenues, strengthen foreign currency inflows and reinforce macroeconomic stability through a larger energy trade surplus.
The acquisition also aligns with XRG’s global expansion strategy. Established as the international investment platform of Abu Dhabi National Oil Company (ADNOC), XRG has been actively pursuing opportunities across natural gas, chemicals and energy solutions. The company has set an ambitious goal of building an LNG portfolio capable of producing between 20 million and 25 million tonnes annually by 2035.
Eni’s participation further underscores the growing appeal of Argentina’s shale resources as global energy companies position themselves to meet rising long-term demand for LNG.
