The upstream blocks are expected to form a core part of the integrated 12 million tonnes per annum (MTPA) Argentina Liquified Natural Gas (LNG) project, complementing XRG's previously announced joint development agreement with YPF and Eni, and advancing key project components in line with the development plan.
For XRG, the proposed investment supports its strategy to build a resilient global gas and LNG platform by securing upstream participation in one of the world's most significant unconventional gas basins and developing its role in a major new LNG export opportunity designed to connect Vaca Muerta's gas resources with global markets.
Three upstream blocks
YPF operates the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas upstream blocks in the unconventional Vaca Muerta basin, located onshore Argentina. These blocks are expected to form a core upstream component of Argentina LNG's integrated development, helping to anchor a large-scale upstream-midstream platform designed to unlock Vaca Muerta's gas resources and support the development of a major new long-term LNG supply source for the global LNG market.
By securing upstream participation in one of the world's most significant unconventional gas basins, XRG will secure its access to long-term resource depth and take a meaningful position in the broader Argentina LNG project.
The upstream assets are expected to supply the gas volumes needed to feed floating LNG units, while also supporting the monetization of condensates associated with gas production.
«Vaca Muerta is one of the world's most attractive gas resources, and this proposed transaction gives XRG a direct role in helping advance a project with the scale, quality and long-term potential to become a significant new source of reliable LNG supply for global markets. We are also pleased to be partnering with YPF, a highly capable and strategic partner with deep expertise in Argentina's energy sector and a leading role in developing Vaca Muerta, and with Eni a leading developer of Floating LNG projects», said Mohamed Al Aryani, President of International Gas, XRG.
Once completed, the transaction will add to XRG's growing global gas and LNG portfolio, which 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 and condensate field in Turkmenistan, and the Area 4 concession in Mozambique's Rovuma basin, including the planned Coral North FLNG and Rovuma LNG onshore development projects. Together these investments support XRG's ambition to build a geographically diversified, integrated gas platform across key supply bases, LNG corridors, and long-term growth markets.
