By Charles Kennedy 

Argentina President Javier Milei met Eni CEO Claudio Descalzi in Paris on Friday to discuss energy investment and the progress of the Argentina LNG project, as its developers work toward a final investment decision before the end of the year.


The meeting, held during Argentina Week events in Paris, focused on developing the country's natural gas resources and expanding Argentina's position in international energy markets, according to Eni.


Argentina LNG, being developed by Eni, state-controlled YPF and Abu Dhabi-based XRG, is designed to monetize Vaca Muerta gas through an integrated production, processing, transportation and export system.

The initial development would have LNG production capacity of 12 million tonnes per annum, using two floating LNG facilities capable of producing 6 million tonnes annually each. Production is currently scheduled to begin in 2030, while the partners are evaluating an expansion that could lift capacity to 18 million tonnes per year.


The developers have steadily advanced the project during 2026. Eni, YPF and XRG signed a binding joint development agreement in February covering the 12-mtpa phase.


In June, Eni agreed to acquire a 32% interest in the Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas blocks in Vaca Muerta, giving the Italian energy major a direct upstream position in acreage intended to supply the LNG development. At the time, completion of that transaction remained subject to regulatory approvals.


The project also applied in August to enter Argentina's Large Investment Incentive Regime, or RIGI, a step the consortium described as a milestone toward the planned year-end investment decision. The two FLNG units are expected to be located offshore Río Negro province.


For Argentina, the development represents an effort to translate Vaca Muerta's large unconventional gas resources into sustained LNG exports. For Eni, it would add another major floating LNG development to a portfolio that already includes projects using FLNG technology elsewhere in the world.


Eni said Friday that Milei and Descalzi also discussed the importance of a stable framework for long-term energy investment as the partners advance the capital-intensive project. The company has identified international markets, including Europe, as potential destinations for future Argentine LNG supplies.


Source: Oilprice.com