Argentina's Energy Giants Push $20 Billion LNG Venture Toward 2026 Decision Point

Argentina’s state-owned energy company YPF is advancing plans for a major liquefied natural gas development that could reshape the region’s energy landscape. Working alongside Italy’s Eni and Abu Dhabi’s investment arm XRG, YPF is targeting the mid-2026 timeframe to make a final investment decision on the $20 billion LNG initiative, according to recent reports.

Project Structure and Partnership Breakdown

The venture represents a significant collaboration in the energy sector, with each of the three partners—YPF, Eni, and XRG—expected to hold approximately one-third equity stakes. The original configuration envisioned a liquefaction facility capable of producing 12 million metric tons annually, positioning it as a substantial player in the global LNG market.

However, the project has undergone considerable restructuring. The facility’s planned output has been revised downward to 6 million metric tons per year, reflecting adjustments to the project’s scope and economics. This reshaping prompted British oil major Shell to withdraw from an earlier phase of Argentina’s LNG developments, as the modified project parameters no longer aligned with the company’s strategic interests.

Timeline and Export Projections

YPF’s leadership anticipates that successful completion of the FID process by mid-2026 would pave the way for the facility to begin exporting LNG around 2030 or 2031. The company’s projection suggests a typical four-year construction and ramp-up period following investment approval.

The Argentinian energy producer is now focused on finalizing the arrangement with Eni and ADNOC’s XRG, having moved past discussions that included other potential participants. The partnership structure reflects confidence in achieving the necessary capital commitments and technical expertise for the initiative’s execution.

Strategic Significance for Regional Energy

This LNG project underscores Argentina’s efforts to monetize its substantial natural gas reserves and establish itself as a reliable liquefied gas supplier. The involvement of Eni, a European energy heavyweight, and XRG, representing Middle Eastern capital, signals international confidence in Argentina’s hydrocarbon potential despite recent economic challenges facing the nation.