XRG Commits to Supporting Argentina’s Emergence as Major Global LNG Supplier
The energy company has backed Argentina's ambitious plans to become a significant player in liquefied natural gas markets, with a flagship project designed to generate substantial economic benefits and employment across the nation.
Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG, has affirmed the company’s confidence in Argentina’s potential to establish itself as a major new supplier of liquefied natural gas to worldwide markets. Speaking at Argentina Week in Paris, Dr. Al Jaber outlined the strategic rationale behind XRG’s participation in the Argentina LNG initiative, emphasising the exceptional qualities of the Vaca Muerta resource and Argentina’s strengthened investment environment.
The Vaca Muerta formation represents the world’s second largest shale gas resource and fourth largest shale oil reserve, according to Dr. Al Jaber. Argentina’s recent energy sector performance underscores this potential, with oil production reaching record levels and the nation achieving its largest energy trade surplus in more than three decades.
Argentina LNG represents a collaborative venture bringing together the complementary expertise of YPF, Eni and XRG. YPF contributes comprehensive knowledge of Argentina’s energy sector and established credentials as the leading shale operator within Vaca Muerta. Eni contributes proven expertise in floating liquefied natural gas delivery, including operations in Mozambique where XRG is already a partner. XRG provides long-term capital, global market reach and technical capabilities developed through ADNOC’s five decades of large-scale operations.
The first phase of the project is designed to produce twelve million tonnes annually. Dr. Al Jaber emphasised that success extends beyond the export of liquefied gas itself. The venture is anticipated to generate more than 40,000 jobs and return billions to the Argentine economy through export earnings, business opportunities for local suppliers and skilled employment for Argentine nationals.
The partnership reflects broader bilateral strengthening between the United Arab Emirates and Argentina. The two nations recently commenced negotiations on a Comprehensive Economic Partnership Agreement, with the YPF–XRG collaboration identified as a flagship example of the long-term, high-impact investment both governments wish to promote.
In June 2026, XRG and Eni each agreed to acquire a 32 per cent interest in three Vaca Muerta blocks operated by YPF: Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas. YPF retains 36 per cent, with the arrangement subject to regulatory approval. The acquisition would establish XRG’s South Atlantic position and reinforce its ambition to become a leading global gas player.
The reforms implemented under President Javier Milei’s administration, particularly the new RIGI investment framework, have generated the long-term stability and predictability required for capital-intensive energy projects, Dr. Al Jaber noted. This policy environment has substantially strengthened Argentina’s appeal to international investors navigating complex, decade-spanning infrastructure developments.
Source: WAM