Eni, XRG to join Argentina LNG upstream blocks

New partners move into Argentina LNG upstream assets

Italy’s Eni (ENIm) and Abu Dhabi-linked XRG have agreed to acquire equity positions in upstream gas blocks in Argentina that are tied to the planned Argentina LNG export project. The deal adds two international partners alongside YPF in the acreage that will underpin the integrated liquefied natural gas development. Completion of the transaction remains subject to approval by the relevant authorities.

Following completion, participation in the blocks is projected to be 36% for state-controlled YPF and 32% each for Eni and XRG. The partnership is structured so that YPF will complete the incorporation of the new participants through UPCO ARLNG I S.A.U., which will hold the relevant concession areas. Local reports indicate that, after the transaction, Eni and XRG will each hold 32% of UPCO ARLNG I S.A.U., while YPF will retain 36%.

Executive comments around the announcement emphasize the role of the transaction in consolidating the partner group for the Argentina LNG value chain. By aligning upstream ownership among YPF, Eni and XRG within a single vehicle, the structure is intended to support coordinated development of the gas resources that will feed the export project.

Upstream role in the 12 Mtpa Argentina LNG project

The upstream assets subject to the transaction are slated to supply gas to the Argentina LNG integrated development. Project plans call for liquefaction capacity of 12 million tonnes per annum of LNG, delivered through two floating LNG units of 6 Mtpa each. This configuration would establish a significant new LNG export outlet based on Argentine gas production.

The linkage between the upstream acreage and the floating LNG facilities positions the new partnership at the core of the project’s supply chain. Gas produced from the blocks held by UPCO ARLNG I S.A.U. is intended to be the feedstock for the planned liquefaction units. The equity alignment among YPF, Eni and XRG in these resources is therefore a key element of the broader scheme.

Discrepancies in reported coverage of concession areas

Local Argentine coverage presents some differences in how the transaction area is described. Some outlets state that the deal covers five specific areas: Meseta Buena Esperanza I and II, Aguada Villanueva Norte, and Las Tacanas I and II. Other sources refer instead to three blocks, without splitting the acreage into five separate parcels.

These variations point to differing reporting conventions rather than a change in the underlying transaction, which is consistently described as covering the upstream blocks that will feed the Argentina LNG project. Despite the discrepancy, reports align on the projected post-deal equity split and the role of UPCO ARLNG I S.A.U. as the holder of the concessions.

Regulatory approvals and next steps

The agreement by Eni and XRG to acquire stakes in the Argentine blocks is not yet effective, as it is still subject to clearance by the competent authorities. Once approvals are received and the transaction closes, the new ownership structure would formalize YPF, Eni and XRG as partners in the upstream phase of Argentina LNG.

With the equity framework defined and the upstream assets earmarked for a 12 Mtpa LNG development using two floating units, the project now has a clearer partner lineup. The focus will shift to advancing regulatory processes and technical planning to translate the agreed structure into concrete progress on the ground.