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Released November 06, 2025 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)
The first phase of the project will deploy two floating liquefaction units (FLNG), each with a capacity of 6 million tons per year (MTPA), which could generate as much as US$14 billion in liquefied natural gas (LNG) and associated liquids exports per year.
The companies could further boost the project's capacity to 18 MTPA, generating US$20 billion in annual exports, according to company statements.
The infrastructure project is expected to amount to investments of US$25 billion. In a recent interview with Horacio Marin, chief executive officer of YPF, for Infobae, the executive highlighted that the companies will soon seek investors to fund the project.
Horacio also foresees investments of US$20 billion in upstream development and plants in Neuquen, where most of Vaca Muerta lies, by 2031 as part of the current midstream expansion.
Eni and YPF expect to have a final investment decision on the Argentina LNG project by next year.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can view the Argentina LNG project reports.
Subscribers can view the project reports.
In October, Transportadora de Gas del Sur (TGS) (Buenos Aires) was awarded a contract to expand the Perito Moreno gas pipeline. The expansion is expected to increase the capacity by 14 million cubic meters per day and require investments of US$560 million. As part of this announcement, TGS also pledged to invest US$220 million in expansion to its network.
Subscribers can view the related project reports.
IIR is currently tracking 179 natural gas pipeline and storage projects in Argentina, totaling US$3.9 billion in investment. See a full list of project reports.
Shale production accounted for 53.2% of the total volumes.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Summary
ADNOC's XRG is the latest international player betting on Vaca Muerta's natural gas expansion by joining Eni and YPF at the Argentina LNG project. Other companies have also announced major investments in Argentina to cope with the country's shale output.Argentina LNG Project
Abu Dhabi National Oil Company's (United Arab Emirates) international arm, XRG, has signed a non-binding framework agreement with YPF (Buenos Aires, Argentina) and Eni SpA (Rome, Italy) for its potential involvement in the Argentina LNG midstream project.The first phase of the project will deploy two floating liquefaction units (FLNG), each with a capacity of 6 million tons per year (MTPA), which could generate as much as US$14 billion in liquefied natural gas (LNG) and associated liquids exports per year.
The companies could further boost the project's capacity to 18 MTPA, generating US$20 billion in annual exports, according to company statements.
The infrastructure project is expected to amount to investments of US$25 billion. In a recent interview with Horacio Marin, chief executive officer of YPF, for Infobae, the executive highlighted that the companies will soon seek investors to fund the project.
Horacio also foresees investments of US$20 billion in upstream development and plants in Neuquen, where most of Vaca Muerta lies, by 2031 as part of the current midstream expansion.
Eni and YPF expect to have a final investment decision on the Argentina LNG project by next year.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can view the Argentina LNG project reports.
Vaca Muerta at the Head of Argentina's Energy Revolution
This is not the only midstream project expanding Vaca Muerta's transport capacity. The Southern Energy project announced its final investment decision in August to deploy two FLNG vessels in the San Matias Gulf offshore Argentina. Together, these vessels have a total capacity of 5.9 MTPA. The company already has a 20-year charter agreement for the vessels MKII FLNG and FLNG Hilli, with the latter expected to begin operations by 2027.Subscribers can view the project reports.
In October, Transportadora de Gas del Sur (TGS) (Buenos Aires) was awarded a contract to expand the Perito Moreno gas pipeline. The expansion is expected to increase the capacity by 14 million cubic meters per day and require investments of US$560 million. As part of this announcement, TGS also pledged to invest US$220 million in expansion to its network.
Subscribers can view the related project reports.
IIR is currently tracking 179 natural gas pipeline and storage projects in Argentina, totaling US$3.9 billion in investment. See a full list of project reports.
The Shale Era
Natural gas midstream developments across Argentina are being announced as the country continues to boost its production volumes, spurred by Vaca Muerta's output. In the first nine months of the year, Argentina averaged 146 million cubic meters of natural gas per day, the highest for that period since 2009 (the oldest available data displayed), according to government data.Shale production accounted for 53.2% of the total volumes.
Key Takeaways
- YPF's Argentina LNG project will have an initial capacity of 12 MTPA with the possibility of expanding it to 18 MTPA
- YPF forecasts infrastructure costs of US$25 billion for this development
- Other midstream projects have been announced to expand Vaca Muerta's export capacity
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
