YPF has signed agreements to sell a combined 64 percent stake in the special-purpose vehicle that will hold the dedicated gas blocks for Argentina LNG, the country’s flagship liquefied natural gas export scheme. The Italian major Eni and XRG, the international energy investment arm of Abu Dhabi’s ADNOC, will each acquire 32 percent of UPCO ARLNG I S.A.U., with YPF retaining 36 percent. The transaction, announced on Monday, transforms the consortium from a downstream-focused partnership into an integrated operator controlling the resource from wellhead to liquefaction, and remains subject to regulatory approval by Neuquén province.

The blocks—Meseta Buena Esperanza I and II, Aguada Villanueva Norte, and Las Tacanas I and II—sit in the Vaca Muerta unconventional basin and will exclusively supply gas to two planned floating LNG units with a combined initial capacity of 12 million tonnes per annum. YPF cleared the path for the deal on 30 April by acquiring the 50 percent stake held by Pluspetrol through an asset swap, consolidating full ownership before transferring the areas into the vehicle. The project targets a final investment decision in the second half of 2026, which would allow first commercial LNG cargoes around 2030, destined for markets in Asia-Pacific, Europe, and Latin America.

Viewed from Buenos Aires, the entry of Eni and XRG into the upstream is a concrete step that de-risks the estimated USD 20 billion initiative and aligns with President Javier Milei’s drive to boost dollar reserves through energy exports. For Eni, the move extends its presence across the entire LNG chain, building on its experience with floating projects such as Coral Sul in Mozambique. From Abu Dhabi, XRG frames the investment as a cornerstone of its strategy to build a globally scaled gas platform, adding Vaca Muerta to a portfolio that already includes Rio Grande LNG in the United States and the Absheron field in Azerbaijan. Both incoming partners describe the Argentine basin as one of the world’s richest unconventional gas resources, capable of underpinning a long-term, reliable supply source at a time when buyers are seeking alternatives to conflict-prone routes.

The next milestone is the approval of the block transfer by Neuquén’s authorities, a step that will formally lock in the upstream ownership structure. After that, attention shifts to the ongoing front-end engineering and design work and the consortium’s ability to secure offtake agreements ahead of the 2026 investment decision.