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The Abu Dhabi national oil company ADNOC has formally joined the Argentina LNG export initiative, marking a major step forward for the country’s ambition to transform its large-scale shale-gas reserves into global export capacity.
Under a framework agreement announced at the ADIPEC 2025 conference, ADNOC’s international investment arm — known as XRG — will work alongside Argentina’s state-controlled YPF SA and Italian energy major Eni SpA to develop the Argentina LNG project, a fully integrated upstream-to-liquefaction development that will export natural gas via floating LNG (FLNG) vessels from the Atlantic coast.
The first phase envisions two FLNG units of 6 million tonnes per year (mtpa) each, giving a combined capacity of 12 mtpa, with the potential to expand to as much as 18 mtpa or more.
Total project investment is estimated in the US$25-30 billion range, with around US$16-17 billion allocated for infrastructure (pipelines, port, midstream) and US$10-12 billion for upstream gas development.
Construction is targeted to begin in about 2027, with first LNG exports anticipated around 2030.
The Vaca Muerta basin in Argentina’s Neuquén province is one of the largest unconventional gas plays globally, with some estimates exceeding 300 trillion cubic feet (Tcf) of gas resources.
Converting this resource into LNG export capacity offers Argentina an opportunity to diversify away from domestic-only gas markets and become a meaningful player in the global LNG supply chain.
The involvement of ADNOC/XRG brings deep finance, international project-execution experience (especially in FLNG and export-oriented gas infrastructure) and helps bolster the large-scale ambition of the programme. Eni brings FLNG technology experience (in Mozambique, Congo) and YPF brings local upstream leadership and resource ownership.
For Argentina, the project is also tied to its regulatory framework — particularly the country’s “Large Investment Incentive Regime” (RIGI) which offers long-term tax, customs and currency stability benefits for major projects. Several regulatory milestones must still be cleared, including a provincial LNG law in Río Negro and formal awarding of new gas concessions in Neuquén.
A project of this scale will generate significant demand for materials, fabrication and equipment across upstream, midstream and export infrastructure. Key areas likely to see high demand include:
Pipeline gathering systems and compression stations to bring gas from Vaca Muerta to the export terminal.
Large liquid-natural-gas processing trains including FLNG modules that require high-integrity materials (corrosion-resistant alloys, clad plates, dissimilar‐metal joints) because of potential sour gas or contaminants common in shale gas.
Floating liquefaction vessels themselves, which involve ship-building, offshore moorings, cryogenic systems, and large-scale modules.
Export terminal infrastructure (jetty, storage tanks, loading arms) on Argentina’s Atlantic coast (province of Río Negro).
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