Eni takes 32% stake in Vaca Muerta blocks for Argentina LNG

(WO) — Eni has agreed to acquire a 32% interest in three upstream blocks in Argentina's Vaca Muerta shale as part of the integrated Argentina LNG project, expanding its position in one of the world's largest unconventional gas developments. 

The agreement covers the Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas blocks. Upon completion, which remains subject to regulatory approvals, YPF will hold a 36% interest in the assets, while Eni and XRG will each own 32%.

The three blocks will supply natural gas to the Argentina LNG project, an integrated upstream and midstream development designed to monetize Vaca Muerta's unconventional gas resources through floating LNG export facilities. The project is planned to include two floating LNG units with a combined export capacity of 12 MMtpa.

"Our entry into the Vaca Muerta unconventional basin, alongside YPF and XRG, strengthens Eni's ability to develop world-scale gas resources and convert them into competitive LNG for international markets," said Guido Brusco, Eni's chief operating officer for global natural resources.

XRG President of International Gas Mohamed Al Aryani said the transaction provides the company with a direct role in developing what it believes could become a significant new source of LNG supply for international markets.

YPF Chairman and CEO Horacio Marín said the addition of Eni and XRG to the upstream portion of the project strengthens the Argentina LNG value chain and supports its continued development.

The transaction marks another milestone for the Argentina LNG project as partners advance plans to position Argentina as a long-term LNG exporter by leveraging the vast unconventional gas resources of the Vaca Muerta formation.