Recently, the companies Eni, YPF and XRG have formalized a Joint Development Agreement(JDA) that seeks to exploit the resources of the Vaca Muerta basin. Vaca Muerta basin in a constant supply, under the potential scheme of liquefied natural gas exporter to the world. This binding pact not only establishes the operational basis, but also integrates the technical expertise of Italy, the local capacity of Argentina and the financial backing of the United Arab Emirates.
Natural gas production and export scheme
The project contemplates a supply capacity of 12 million tons per year. The technical design is supported by the implementation of two floating liquefaction plants, known as FLNGeach with a capacity of 6 mtpa.
The agreement also stipulates the start of detailed engineering studies, called FEED, which will define the processing and transportation infrastructure required to move the gas from the field to the dispatch terminals.
The schedule established by the partners aims to reach the Final Investment Decision(FID) during the second half of 2026. Under this scheme, YPF leads the local integration while Eni contributes with its technological experience in gas operations on a global scale.
The integration of XRG, a subsidiary of ADNOC, strengthens the commercial and financial structure of the consortium, ensuring that the Argentine cryogenic fluid has efficient distribution channels to the most demanding international markets.
The start-up of this infrastructure represents an opportunity to diversify reliable energy sources in a context of high volatility. The executives of the three firms have agreed that the potential of the shale formation is sufficient to supply domestic demand and turn the country into a recurrent exporter.
Through technical and financial cooperation, this gas and liquefaction complex is expected to generate sustainable economic benefits and specialized jobs in the Neuquén region and export nodes.
Source and photo: Eni