Eni and YPF Finalize $25 Billion LNG Engineering Deal in Argentina's Vaca Muerta

Italy's Eni and Argentina's YPF have finalized an engineering agreement for a major liquefied natural gas (LNG) project in the Vaca Muerta basin, aiming to develop gas resources through production, treatment, transportation, and floating liquefaction units. The project targets an annual LNG capacity of 12 million metric tons and aims to double YPF's gas production by 2024, requiring drilling of 800 new wells and an estimated $40 billion investment. Eni will manage the floating liquefaction while YPF handles upstream operations, with a market entry goal set before 2029. The partnership builds on an initial accord signed in June and benefits from Eni's expertise in floating LNG units from projects in Congo and Mozambique. A front-end engineering and design agreement is set to be signed in Buenos Aires, with a final investment decision expected soon, reflecting significant progress in the collaboration. This initiative underscores Argentina's potential to become a key player in the global LNG market.