Paris:XRG is backing Argentina's ambition to emerge as a major supplier of liquefied natural gas (LNG) to global markets, as stated by Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG.
According to Emirates News Agency, Dr. Al Jaber expressed confidence in Argentina's resources and investment climate during Argentina Week in Paris. He highlighted Vaca Muerta as the world's second-largest shale gas resource and noted Argentina's significant energy trade surplus achieved last year. He emphasized that the collaboration between YPF, Eni, and XRG is poised to deliver a globally competitive LNG project.
Dr. Al Jaber met with President Javier Milei and other key industry leaders during the event. He praised the reforms led by President Milei, such as the new RIGI investment framework, which he believes are fostering long-term stability and attracting international investors to Argentina.
He further explained that the success of the LNG project is not only measured by exports but also by the economic benefits it brings to Argentina, including skilled jobs and business opportunities for local suppliers. The partnership aims to create over 40,000 jobs and inject billions into the Argentine economy.
The partnership combines YPF's expertise in Argentina's energy sector, Eni's experience with floating LNG delivery, and XRG's capital and market presence, promising a reliable connection to global markets. Dr. Al Jaber also noted the strengthening relationship between the UAE and Argentina, highlighted by ongoing negotiations for a Comprehensive Economic Partnership Agreement.
The first phase of the Argentina LNG project will produce 12 million tonnes per annum, supporting XRG's goal to become a top-five global gas player. In June 2026, XRG and Eni will each acquire a 32% interest in three YPF-operated Vaca Muerta blocks, pending regulatory approval, with YPF retaining a 36% stake. These blocks are expected to supply gas to the Argentina LNG project, enhancing XRG's global gas platform.