Argentina's Energy Surge: A New LNG Venture

Argentina's state-controlled oil company, YPF, has announced a strategic partnership with Italy's Eni and XRG, an investment arm of Abu Dhabi National Oil Company (ADNOC). The collaboration is set to bolster Argentina's liquefied natural gas (LNG) project, YPF revealed on Tuesday.

In October, YPF and Eni finalized an engineering agreement to export gas from the Vaca Muerta formation, recognized as the world's second-largest unconventional natural gas reserve. Spearheading the initiative, YPF plans to establish floating liquefaction units at a port in Rio Negro, with gas transported from Vaca Muerta in Neuquen via pipeline.

This ambitious LNG project promises to significantly reinforce Argentina's foreign exchange reserves, potentially bringing in $20 billion in annual export revenues.