Eni and YPF seal LNG partnership to unlock Vaca Muerta reserves
Italian Prime Minister Giorgia Meloni and Argentine President Javier Milei have overseen the signing of a significant agreement between Eni and YPF to develop liquefied natural gas exports from Argentina's vast Vaca Muerta shale formation.
The ceremony took place at Palazzo Chigi in Rome, with Eni CEO Claudio Descalzi and YPF CEO Horacio Marín exchanging signed documents as the two leaders looked on approvingly. The moment highlighted the strengthening diplomatic and economic ties between Italy and Argentina, reinforced by the ideological alignment between Meloni and Milei.
The Argentina LNG project represents a major step forward in developing the world's second-largest unconventional gas reserves. Under the agreement, natural gas from Vaca Muerta in southwestern Argentina will be transported to an Atlantic port in Río Negro province, where floating liquefaction units will convert it to LNG for export.
Eni's involvement centres on providing two LNG vessels, each capable of processing 6 million tonnes annually. The Italian company was selected for its proven expertise in floating LNG projects, particularly those developed in Congo and Mozambique, as well as its recognised execution capabilities.
The project aims to export up to 30 million tonnes of LNG per year by 2030, with the first phase targeting 12 million tonnes annually. Exports could commence as early as 2027-2028, potentially generating between $12 billion and $15 billion in annual revenue through to 2050.
This partnership is particularly strategic for Italy, which imports 95% of its natural gas consumption, whilst Argentina seeks to become a leading global LNG exporter under Milei's administration.
