ENI, YPF finalise agreement for LNG project in Argentina
Italy’s Eni and Argentina’s state-owned YPF have finalised an agreement to advance a liquefied natural gas (LNG) project in the Vaca Muerta field in northern Patagonia, Argentina.
The agreement was formalised after Eni CEO Claudio Descalzi met with Argentina’s President Javier Milei in Buenos Aires to discuss existing and future projects.
After the meeting, Descalzi and YPF’s president and CEO, Horacio Marin, signed the final technical project description for the LNG phase of the Argentina LNG project.
They also signed a preliminary agreement to reach a final investment decision for the project.
The Argentina LNG project encompasses the development of the Vaca Muerta gas field.
Argentina LNG is an integrated project focused on upstream and midstream gas development, aimed at harnessing the onshore Vaca Muerta gas field.
This project is designed to cater to international markets, with plans to export up to 30 million tonnes per annum (mtpa) of LNG in several independent phases.
The project comprises gas production, processing, transportation and liquefaction for export through two floating liquefied natural gas (FLNG) units.
Each of the FLNG units has a capacity of 6mtpa, which translates to around nine billion cubic metres of gas annually.
In addition, the project also includes the export of associated liquids.
Claudio Descalzi said: “Today we had the opportunity to showcase the progress of our joint projects and Eni’s prospects in Argentina to President Milei.
“We are proud to have been chosen for such an important project and to contribute to the development of Argentine LNG, which will represent a significant source of supply for international markets.
“The specific and distinctive expertise we have developed in the FLNG projects in Congo and Mozambique makes us an ideal partner for implementing this type of project.”
Eni said the project is in line with its strategy to support the energy transition by prioritising gas production, aiming for carbon neutrality by 2050.
The agreement follows a heads of agreement signed by Eni and YPF in June.
Eni will leverage its expertise in speeding up the implementation of development projects using FLNG units, while YPF will bring its experience in managing upstream operations.
YPF CEO Horacio Marin stated that the project would necessitate the drilling of 800 new wells, and revealed plans to double the company’s gas production by 2024, reported Reuters.
Marin also projected that the project would require $25bn in infrastructure investment and $15bn for upstream development.
