In a landmark move for South America’s energy future, Italian energy giant Eni has signed a memorandum of understanding (MoU) with Argentina’s state-run oil company YPF to explore participation in a $50 billion liquefied natural gas (LNG) venture. The ambitious Argentina LNG project aims to catapult the country into the ranks of major global LNG exporters, leveraging its vast unconventional gas resources.
This agreement marks a significant step toward unlocking the enormous potential of the Vaca Muerta shale formation — one of the world’s largest reserves of unconventional gas. The Argentina LNG initiative is designed as a fully integrated project, encompassing upstream gas extraction, midstream infrastructure, and export logistics. It is being developed in three phases through a 50:50 partnership between YPF and European supermajor Shell.
Eni’s potential involvement could provide the technical expertise and financial muscle needed to push the project forward on the global stage. If fully realized, the project could export up to 30 million tonnes per annum (tpa) of LNG by the end of this decade — positioning Argentina as a strategic energy supplier in an increasingly LNG-dependent world.
Beyond economic gains, the project is also expected to attract foreign investment, generate thousands of jobs, and establish Argentina as a serious contender in the global energy transition.
SOURCE: Oilspot Suriname