XRG recently signed a binding agreement with Argentina’s state-owned oil and gas company YPF and Italian energy firm Eni to join the 12 mtpa phase of the integrated Argentina LNG project.
Under the agreement, the partners will commence front-end engineering design (FEED) and related activities, including engineering, technical structuring, and key commercial and financing workstreams.
This large-scale integrated gas and liquefaction project will unlock Argentina’s Vaca Muerta shale basin and help position the country as a long-term global LNG supplier.
The LNG project is expected to deliver 12 mtpa of LNG capacity, via two floating LNG facilities with a capacity of 6 mtpa each.
Marin said during YPF’s earnings call on Friday that the project’s CapEx, excluding upstream investment, is estimated at around $20 billion.
He said the project is intended to be financed through non-recourse financing with multiple sources of funding, including ECAs, development banks, and commercial banks as potential anchors.
Marin confirmed that the partners are targeting a final investment decision (FID) for 2026.
He said that commercial operation for the first floating LNG unit is expected by 2030, and the second unit by 2031.
“During 2026, we will evaluate the possibility to expand the project for an additional capacity of seven million tons per year through a third floating LNG vessel, for which FID will take place in 2027 or 2028, and COD (commercial operation date) by 2032,” he said.
According to YPF’s presentation, the expansion project’s CapEx would be approximately $8 billion.
Fourth partner
In December 2025, UK-based LNG giant Shell decided not to participate in the 10 mtpa phase of the YPF-led Argentina LNG project for which it signed a project development agreement in December 2024.
Shell participated in pre-FEED only.
Marin also answered a question during the call about whether YPF plans to bring a new partner to join the Argentina project.
“We are analyzing the interest of a fourth partner in this moment, but it’s not like it’s necessary, the fourth partner, to develop the project,” he said.
“With the three, we can develop the project for the 12 million tons per year size,” Marin said.
