YPF, Eni Advance $40 Billion Vaca Muerta LNG Project with Engineering Deal

Argentina’s YPF and Italy’s Eni finalized an engineering agreement for the $40 billion Vaca Muerta LNG project, targeting first exports before 2029. The deal advances plans for floating liquefaction and major midstream expansion.

(Reuters) — Italy's Eni and Argentina's YPF have finalized a engineering agreement on a Vaca Muerta liquefied natural gas (LNG) project, they said in a presentation on Oct. 10 to sign the deal.

Eni and YPF in June signed an initial accord to cooperate on the development of gas resources from the Vaca Muerta field in Argentina.

Eni at that time said the deal would cover production, treatment, transportation and liquefaction of gas through floating units for a total capacity of 12 million metric tons per year.

"YPF will be responsible for the upstream, and we will be responsible for the floating liquefaction," Eni CEO Claudio Descalzi said at the event on Friday. "We need to reach the market before 2029."

YPF CEO Horacio Marin said the project will require drilling 800 new wells and aims to double the company's 2024 gas production.

Marin estimated the initiative will need $25 billion in infrastructure investment and $15 billion for upstream development.