In a move that accelerates the internationalization of Argentine energy resources, YPF has intensified its dialogues with Middle Eastern oil giants to incorporate key partners in its ambitious liquefied natural gas (LNG) export project.
According to information obtained by Shale24, the state-owned oil company is seeking to diversify its investor base and mitigate financial risks in the development of Argentina LNG, the initiative focused on the exploitation of Vaca Muerta.
The main focus of the negotiations is on ADNOC , the UAE's national oil company, whose XRG unit has expressed concrete interest in joining the consortium. Sources close to YPF reveal that the Emirati entity has requested precise details on the terms of participation, including equity stakes and operational commitments.
This approach is not accidental: ADNOC, with its vast experience in liquefaction and export projects, represents an ideal ally to scale up the productive capacity of the Neuquén field towards Asian and European markets, where the demand for LNG continues to rise.
Meanwhile, Saudi Aramco , the Saudi giant, is holding active discussions with YPF's management. CEO Amin Nasser's recent visit to Buenos Aires, for a forum organized by JP Morgan, served as a catalyst for strengthening these ties.
Aramco, which is exploring diversification beyond crude oil, sees Vaca Muerta as an opportunity to secure long-term gas supplies, aligning with its energy transition strategy.
The Argentina LNG project, phase 1, involves the construction of a gas pipeline from Neuquén to the coast of Río Negro, where two floating liquefaction units (FLNGs) of 6 million tons per year each—the largest in the world—will be installed. This infrastructure is complemented by gas processing plants and specialized vessels.
The agreement with the Italian company Eni
Back in October, YPF signed a technical agreement with ENI, the Italian multinational , to move forward with the detailed engineering phase for a 12 million tonne annual project, with an option to expand to 18 million tons by incorporating Shell. This agreement marks a milestone in the development of the project.
From a financial point of view, the undertaking demands a monumental injection: between 25 and 30 billion dollars in infrastructure works, plus 15 billion in upstream exploration and a financing scheme projected at 20 billion via project finance.
The final investment decision (FID) is expected in the second quarter of 2026, at which point the formal fundraising process will begin. These figures not only reflect the scale of the challenge but also the potential to generate the equivalent of US$15 billion annually in export revenue, strengthening Argentina's trade balance.
Analysts point out that the influx of capital from the Persian Gulf could unlock not only resources, but also technological transfers in operational efficiency and environmental sustainability, crucial aspects for competing in a sector increasingly regulated by global emissions standards.
Looking ahead, YPF CEO Horacio Marín will make a key trip to Abu Dhabi next week for the ADIPEC conference, where a preliminary announcement regarding the addition of a new partner is expected. This forum, one of the most influential in the energy industry, could catalyze formal commitments and attract additional offtakers, such as major US companies.