Eni takes 32% of Vaca Muerta blocks feeding Argentina LNG
Italian major joins YPF and XRG on shale acreage supplying a planned floating LNG hub
Eni has signed an agreement to buy a 32% interest in three upstream blocks in Argentina's Vaca Muerta shale basin, joining YPF and XRG on acreage that will feed a major LNG export scheme. The blocks in question are Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas. Once regulators approve, ownership will be split between YPF with 36%, and Eni and XRG with 32% each.
The acreage underpins the Argentina LNG development, an integrated upstream and midstream project targeting 12m tonnes a year of liquefaction capacity through two floating LNG units of 6m tonnes each. For Eni, the deal offers a foothold across the whole chain, from Argentine shale gas to LNG supplied to international buyers.
Eni's chief operating officer for global natural resources, Guido Brusco, said the move positioned the company from Argentine upstream through to LNG delivery. Mohamed Al Aryani, president of international gas at XRG, called Vaca Muerta one of the world's most attractive gas resources and highlighted Eni's record as a floating LNG developer.
YPF chairman and chief executive Horacio Marin said the entry of Eni and XRG strengthened the project's value chain as it moves toward global-scale development, adding weight to Argentina's ambitions to become a significant LNG exporter.
