Eni said on Friday that this is an “important step” toward reaching the final investment decision for a 12 mtpa LNG phase of the integrated upstream-midstream Argentina LNG project.
The project involves the production, processing, transportation, and liquefaction of gas for export through two floating liquefaction units (FLNG) with a capacity of 6 mtpa, in addition to the valorisation and export of associated liquids.
Today’s agreement follows the head of agreement signed by the two companies in June this year.
Eeni said it leverages the expertise and technology acquired by the company in the fast-track implementation of development projects using FLNG, as well as YPF’s experience managing the upstream operations of the unconventional Vaca Muerta field.
Eni’s CEO, Claudio Descalzi, met with the President of Argentina, Javier Milei, in Buenos Aires on Friday to discuss Eni’s projects in the country and possible future initiatives.
During the business trip, Descalzi and Marin signed the preliminary agreement to reach the FID for the Argentina LNG project, the company said.
Argentina LNG
Last month, Marin confirmed that the state-owned oil and gas company and its partners Eni and Shell expect to take final investment decisions on two stages of the Argentina LNG project in 2026.
Argentina LNG is a large-scale integrated, upstream, and midstream gas development project aimed at developing the resources of the onshore Vaca Muerta field and serving international markets.
It will export in a phased approach up to 30 million tons per year of LNG by 2030.
As per the phase with Shell, the two firms signed a project development agreement (PDA) for the second phase of the Argentina LNG export project in December 2024.
The second phase will have a capacity of 10 mtpa and two FLNGs.
SESA
Earlier this year, Golar announced the decision and fulfillment of all conditions precedent for the 20-year re-deployment charter of the FLNG Hilli Episeyo, first announced in July 2024.
FLNG Hilli, with a nameplate capacity of 2.45 mtpa, is expected to start its contract in 2027.
Also, the vessel will be chartered to Southern Energy (SESA), offshore Argentina.
SESA’s shareholders comprise Pan American Energy (30 percent), YPF (25 percent), Pampa Energia (20 percent), Harbour Energy (15 percent), and Golar LNG (10 percent).
In addition, Golar and SESA have signed definitive agreements for a 20-year charter for the MKII FLNG, currently under conversion at CIMC Raffles shipyard in Yantai, China.
The partners took FID on the project in August.
