Eni stated in a press release that the agreement outlines the necessary steps to reach the final investment decision for the Argentina LNG project.
Moreover, this phase includes the production, treatment, transportation, and liquefaction installations of gas through floating units, for a total capacity of 12 million tons of LNG per year.
Argentina LNG is a large-scale integrated, upstream and midstream gas development project designed to develop the resources of the onshore Vaca Muerta field and serve international markets.
It will export in a phased approach up to 30 million tons per year of LNG by 2030.
Eni noted that this agreement follows the memorandum of understanding signed in April this year.
It represents a further strategic step forward towards the maturation of the Argentina LNG project, it added.
Eni’s COO of global natural resources, Guido Brusco, said in April that the third phase of the Argentina LNG export project would require an investment of about $20 billion.
First phase FID
YPF CEO Horacio Marin recently said that Pan American Energy, Golar LNG, Pampa Energia, Harbour Energy and the company plan to take a final investment decision on Argentina’s second floating LNG production unit by the end of July.
Last month, Golar LNG 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, will start its contract in 2027.
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.
If approved, the partners expect the MKII FLNG, with a nameplate capacity of 3.5 mtpa, to start operations in 2028.
Marin previously said that the first phase of the Argentina LNG project is the SESA project, while YPF is developing the second phase with UK-based LNG giant Shell.
The second phase would have a capacity of 10 mtpa and two FLNGs.
In December 2024, YPF Shell signed a project development agreement (PDA) for the second phase of the Argentina LNG export project.
