YPF secures global partners for Argentina LNG project amid domestic gas price crisis

State‑controlled oil firm YPF signed final agreements to bring Italy’s Eni and Abu Dhabi‑based XRG (ADNOC’s investment arm) into the upstream of the Argentina LNG megaproject in Vaca Muerta. Each will acquire a 32% stake in the newly created vehicle UPCO ARLNG I S.A.U., while YPF retains 36%. The consortium will develop the Meseta Buena Esperanza, Aguada Villanueva Norte and Las Tacanas gas blocks, supplying a planned 12 million‑tonnes‑per‑annum LNG capacity that will be processed by two floating LNG units.

At the same time, the Argentine government’s decision to end subsidised LNG for industry has driven the international price of gas to about $24 per MMBtu, ten times the previous regulated rate. More than 130 factories have reported supply cuts, and many firms are halting production because the cost of imported gas exceeds wages. The Energy Ministry has meanwhile authorised a new gas pipeline linking non‑conventional fields to the Loma La Lata–Sierra Barrosa system, aiming to ease the transport bottleneck that has constrained Vaca Muerta’s gas output.

The partnership aims to transform Argentina into a major LNG exporter, while the domestic gas‑price shock threatens industrial activity across the country.