Italy-based Eni, Argentina’s state-owned YPF, and ADNOC's international investment arm XRG have formalised a binding joint development agreement (JDA) to push forward the Argentina LNG project.

This initiative aims to capitalise on Argentina's Vaca Muerta shale basin, positioning the nation as a significant contributor to the global liquefied natural gas (LNG) supply chain.

The agreement is a vital step towards reaching a final investment decision (FID) for the venture.

The Argentina LNG project is a comprehensive development encompassing upstream activities to LNG production.

Eni COO global natural resources Guido Brusco said: “With the JDA, a new partner – XRG – joins Argentina LNG, which is emerging as one of the most promising opportunities in the global gas landscape.

“This project is taking shape in a way that reflects both technological leadership and strategic vision.”

The Argentina LNG project aims to provide a capacity of 12 million tonnes per annum (mtpa) of LNG, facilitated by two floating LNG facilities, each with a 6mtpa capacity.

These facilities are set to encompass production, processing, transportation and export infrastructures for LNG.

The JDA outlines the collaborative work plan among the parties involved, advancing the project into its next phase of development.

This phase will include front-end engineering design alongside associated activities such as engineering, technical structuring, and essential commercial and financing operations.

YPF president and CEO Horacio Marín said: “This new step marks the formal inclusion of XRG into the project we have been developing together with Eni.

“These two world-class players allow us to position Argentina LNG as one of the leading LNG projects globally. We will now continue working very intensively to reach FID during the second half of 2026.”

Earlier this month, Eni dispatched the initial cargo of LNG from the Nguya floating LNG facility, marking the beginning of gas exports for phase two of the Congo LNG project.