XRG backs Argentina LNG project with upstream snatch

XRG snatches a stake in Argentina’s upstream: Adnoc’s international investment arm XRG and Italy’s Eni have each agreed to acquire a 32% stake in three upstream gas blocks in Argentina’s Vaca Muerta shale basin from state-owned YPF, which will retain the remaining 36% interest, according to a press release (pdf).

IN CONTEXT- We reported in November 2025 that XRG, YPF, and Eni signed a non-binding agreement to explore joining an Argentina LNG venture, then in February that the three had moved to a front-end engineering design agreement for the same project. Reuters previously pegged total project financing at USD 12.5 bn.

What we know: The three YPF-operated blocks are expected to form the upstream backbone of an integrated LNG project, with gas piped from the assets to supply two planned floating LNG units. The initial phase targets 12 mtpa of production capacity — 6 mtpa per vessel.

Where this fits in XRG’s global gas push: Vaca Muerta adds to a portfolio that already spans NextDecade’s Rio Grande LNG in the US, Azerbaijan’s Absheron gas field, Turkmenistan’s Offshore Block 1, and Mozambique’s Area 4 concession. The company is also eyeing potential investments in Canada and Australia, while also doubling down heavily on US gas.

Could we see another Latin American move? Bloomberg previously reported that Adnoc is weighing a potential XRG entry into Venezuela’s oil market through a partnership with another international energy firm — though any move would depend on clear regulatory and financial structures for investments in the country and coordination with the US.