Italy's Eni and Abu Dhabi's XRG have each acquired a 32% stake in three gas blocks within Argentina's Vaca Muerta shale formation, marking a significant step forward for the country's liquefied natural gas export ambitions.
The transactions, finalized on June 29, see the two international majors joining Argentina's state-controlled energy giant YPF as shareholders in the entity developing the flagship LNG project.
This move solidifies the capital structure for the $20 billion initiative, which aims to transform Argentina into a major global LNG supplier.
This move solidifies the capital structure for the $20 billion initiative, which aims to transform Argentina into a major global LNG supplier.
The deal structure reduces execution risk for the project by bringing in partners with deep pockets and extensive technical expertise in shale extraction and LNG logistics.
For Eni, the acquisition strengthens its position in Latin America's largest shale play, while XRG gains a foothold in a region critical to future energy security.
The involvement of these majors is likely to reassure other potential investors and lenders about the project's viability, potentially accelerating the timeline for first gas.