YPF partners with ADNOC for LNG project

Argentine state-owned oil company YPF and Italy’s Eni have reached an agreement with the investment arm XRG of Abu Dhabi National Oil Company (ADNOC) to join Argentina’s liquefied natural gas (LNG) project, YPF CEO Horacio Marín announced.

YPF is leading the initiative, which plans to install floating liquefaction units at a port in the Patagonian province of Río Negro.

“XRG’s entry strengthens a key initiative for Argentina’s energy future. This strategic partnership allows us to move forward with the development of a world-class LNG export platform with impact on employment, investment, and international positioning,” said Horacio Marín, chairman and CEO of YPF, in a statement. The project is part of YPF’s “4x4 Plan,” which aims to transform the company into a leader in shale production and hydrocarbon exports by 2031.

The UAE firm now has 30 days to formalize the agreement with a definitive contract — expected to be finalized in Buenos Aires — that would give it roughly a one-third stake in the project already shared with Italy’s Eni, according to Forbes Argentina.

The initiative envisions 12 million tonnes per year of LNG exports (equivalent to 50 million cubic meters per day of gas), along with more than 100,000 barrels/day of oil and 150,000 barrels/day of LPG.

This would represent USD 10 billion per year in exports for at least two decades, along with USD 16 billion in infrastructure investment and an additional USD 14 billion in upstream development.