ADNOC eyes coming aboard $50 billion LNG project with Eni and YPF in South America

November 5, 2025, by Melisa Cavcic

Thanks to a deal with Italy’s energy giant Eni and Argentina’s oil and gas firm YPF, XRG, a subsidiary of the UAE-headquartered Abu Dhabi National Oil Company (ADNOC), has taken a non-binding step to join a proposed liquefied natural gas (LNG) project in Sierra Grande Norte, on the South American country’s Atlantic coast.

Rendering of Argentina LNG project; Source: YPF

Eni and YPF’s signing of a non-binding agreement with XRG for participation in the Argentina LNG (ARGLNG) development opens doors for ADNOC’s potential involvement in the 12 million tons of LNG per year (mtpa) phase of this large-scale integrated upstream and midstream gas project designed to develop the resources of the onshore Vaca Muerta field and serve international markets.

The project will export up to 30 million tonnes of LNG per year in various independent phases by 2030. The final technical project description was inked on October 10 by Eni and YPF. The latest agreement establishes a framework for cooperation between the duo and ADNOC’s XRG, with the aim of inking a joint development agreement (JDA) for ARGLNG.

Argentina LNG encompasses gas production, processing, transportation, and liquefaction for export through two floating gas liquefaction units (FLNG) with a capacity of 6 mtpa, equivalent to approximately 9 billion cubic meters of gas per year, each, as well as the valorisation and export of associated liquids.

This move builds on the existing relationship between Eni and ADNOC, which are strategic partners, having previously collaborated on projects in the United Arab Emirates and other geographies. The UAE giant’s involvement as a potential partner in Argentina LNG is expected to support the final investment decision for the multibillion-dollar project.

The development, said to be worth $50 billion, is expected to benefit from significant operational efficiencies and synergies from two FLNGs in the same area. Golar LNG’s MKII FLNG unit, chartered for the project, will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to the FLNG Hilli.

View on Offshore-energy.

Phase 2 envisions the construction of a 10 mtpa onshore modular liquefaction plant, which is expected to be enlarged with two trains as part of Phase 3 to reach up to 30 mtpa.

XRG is actively working on bolstering its portfolio, as illustrated by a recent move to acquire a stake in Southern Gas Corridor (SGC) CJSC and its first strategic U.S. investment, which enabled it to get an interest in Phase 1 of NextDecade Corporation’s Rio Grande LNG project in Texas.