ADNOC’s XRG and Eni each acquire 32% stakes in three Argentina Vaca Muerta gas blocks to advance 12 MMtpa LNG project

ADNOC’s international investment arm XRG and Italy’s Eni have each signed agreements to grab a 32% stake in three Vaca Muerta shale gas blocks in Argentina. The announcement came in July 2026. The three blocks — Aguada Villanueva, Las Tacanas, and Meseta Buena Esperanza — are held by state-controlled YPF, which keeps a 36% operating interest after consolidating full ownership of the assets earlier this year.

XRG and Eni sign stake acquisition agreements for three Vaca Muerta blocks

The structure is straightforward: XRG and Eni each hold exactly 32%, and YPF holds the remaining 36% as operator. YPF picked up full ownership of the three blocks through a swap deal with Pluspetrol earlier in 2026, which set up this three-way split.

Both acquisitions still need regulatory approval from Argentine authorities. The agreements are signed — but not yet final.

Upstream stakes are designed to supply gas for two planned floating LNG facilities

These block deals don’t exist in isolation. Earlier in 2026, XRG, Eni, and YPF already signed a joint development agreement for the Argentina LNG project—a plan built around two floating liquefaction facilities with a combined capacity of 12 Mtpa. The upstream assets are meant to supply the gas volumes those floating LNG units will need. XRG also notes the arrangement supports monetization of condensates associated with gas production, adding another revenue stream to the project’s economics.

XRG framed the move in strategic terms: securing upstream participation in one of the world’s most significant unconventional gas basins while building its role in a major new LNG export opportunity designed to connect Vaca Muerta’s resources with global markets.

The deal aligns with strategic expansion goals of all three partners

Each partner has its own reasons for wanting this done, and their stated goals line up closely.

XRG has publicly set a target of building a top-five integrated gas and LNG business with a capacity of 20 to 25 MMtpa by 2035. The Argentina blocks move that ambition forward by adding upstream exposure in a prolific shale formation. Eni framed the transaction as consistent with its broader strategy—strengthening and diversifying its upstream gas portfolio; developing integrated projects along the value chain; and expanding LNG equity marketing while also contributing to energy security and competitiveness of supply.

For YPF, the logic is about scale. CEO Horacio Marín said the entry of Eni and XRG into the upstream segment strengthens the project’s value chain and lets YPF move toward development on a global scale. That kind of international backing matters for a project this size and complex.

XRG president Mohamed Al Aryani put it plainly: “Argentina has the potential to play an increasingly important role in meeting the world’s growing demand for natural gas, and projects such as Argentina LNG will be important to unlocking that opportunity.”

XRG’s existing global gas and LNG portfolio provides context for the Argentina move

To understand why XRG is moving into Vaca Muerta, it helps to look at where the company already operates. ADNOC launched XRG in late 2024 specifically to lead the UAE’s expansion in natural gas, low-carbon energy, and chemical markets. In a relatively short time, a geographically diverse portfolio has taken shape.

That portfolio currently includes interests in Rio Grande LNG in the United States, the Absheron offshore gas and condensate field in Azerbaijan, the Offshore Block 1 gas concession in Turkmenistan, and the Area 4 concession in Mozambique’s Rovuma basin—which encompasses the planned Coral North FLNG and Rovuma LNG onshore development projects.

Argentina adds a new geography to that strategy. Vaca Muerta is one of the world’s largest unconventional gas formations, and Argentina’s ability to monetize it at scale has long been held back by limited export infrastructure. A floating LNG solution addresses exactly that bottleneck.

20 to 25 MMtpa of integrated gas and LNG capacity

Here’s what this deal actually amounts to. XRG and Eni have each agreed to take a 32% stake in three Vaca Muerta shale gas blocks—Aguada Villanueva, Las Tacanas, and Meseta Buena Esperanza—with YPF retaining a 36% operating interest. Both transactions remain pending regulatory approval.

The upstream stakes tie directly into the broader Argentina LNG project, formalized earlier in 2026, calling for two floating liquefaction units with a combined 12 MMtpa capacity. Those blocks are expected to supply the gas the units need to run.

For XRG, the deal moves its goal of reaching 20 to 25 MMtpa of integrated gas and LNG capacity by 2035 closer to reality. Eni gains diversified upstream gas exposure and broader LNG equity marketing reach. For YPF, two major international partners are now lined up to help develop one of Argentina’s most consequential energy export opportunities.

The deal isn’t done yet, but the direction is clear: three major energy players are betting that Vaca Muerta’s gas can reach global markets — and that floating LNG is the way to get it there.