The Argentine national oil company (NOC), YPF, is considering the development of Argentina LNG, a liquefied natural gas (LNG) production complex located at the Port of Bahía Blanca in Argentina.
YPF Eni Argentina LNG Vaca Muerta Phase 1 FLNG History
Argentina holds the second-largest shale gas reserves in the world, positioning it as a major player in the global energy market.
In recent years, the country has ramped up development efforts to reduce energy imports and become a net gas exporter.
With growing investments in LNG infrastructure and regional pipeline connections, Argentina is actively working to expand gas exports to neighboring countries and global markets.
Vaca Muerta, located in the Neuquén Basin, is one of the world’s largest shale gas and oil fields and serves as a key driver of Argentina’s energy future.
This vast unconventional resource contains an estimated 308 trillion cubic feet (tcf) of technically recoverable shale gas.
YPF plans to boost LNG production from Vaca Muerta through the Argentina LNG project, which will involve:
- $50 billion capaital expenditure
- Three phases development
- 30 million tonnes per year (t/y) of LNG production capacity
In December 2024, YPF signed a new agreement with Shell to develop the project, taking the place of Petronas.
In April 2025, YPF signed a memorandum of understanding (MoU) with Eni for the development of the first phase.
Eni is planning to install two floating LNG (FLNG) units, each with a capacity of 6 million t/y.
These FLNG units will replicate the design and engineering of Eni’s vessels used in Mozambique’s Coral project.
To follow the FLNG design model, Eni is expected to collaborate with Technip Energies.
FEED will begin in 2025, followed by EPC in 2026, with operations anticipated to start by 2030.
June 2025
The partners should award the FEED work in August 2025.
September 2025
Eni should lead the FEED tender for which it should select contractor including:
- McDermott, performing the pre-FEED
- Samsung Heavy Industries (SHI)
- Technip Energies with JGC Corporation and Cosco Shipping Heavy Industry
- Wison New Energies
FEED should start in December 2025, while EPC will follow in 2026.
October 2025
YPF and Eni officially signed their common aggreement to develop the project.
The competitive FEED could be awarded before the end of 2025.
November 2025
YPF and Eni signed a financial support agreement with XRG.
XRG is an energy investment company, belonging to Adnoc.
February 2026
YPF and Eni are ready to move to FEED phase.
Since 2019, McDermott has been working on the project, and could perform the FEED work.
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