Argentine President Javier Milei and Italian Prime Minister Giorgia Meloni have signed a strategic agreement between Argentina's national oil company, YPF, and Italian energy giant Eni for the Argentina LNG (ARGLNG) project. Eni Chief Executive Claudio Descalzi was present in the Italian delegation during the exchange ceremony.

The leaders met at Palazzo Chigi in Rome on June 6, where Milei was received with a warm welcome in the government headquarters' courtyard of honour.

They also adopted the Italy-Argentina Action Plan 2025-2030, originally announced during Meloni's visit to Buenos Aires in November 2024, aimed at strengthening bilateral cooperation across political, economic, and investment sectors.

The LNG agreement establishes the framework for reaching a final investment decision on the project phase encompassing production, treatment, transportation, and liquefaction installations using floating units, with a total capacity of 12mn tonnes of super-chilled gas annually.

This deal builds upon a memorandum of understanding signed in April 2025 and represents a significant advancement toward the maturation of the $50bn LNG project, Offshore Technology reported.

Argentina LNG is designed as a large-scale integrated upstream and midstream gas development project to exploit Vaca Muerta field resources for international markets. The initiative aims to export up to 30mn tonnes of LNG annually by 2030 through a phased approach.

According to Italian public broadcaster RAI, the Action Plan includes establishing a working group to facilitate investment flows between the two countries and promoting cooperation in key sectors for mining development and LNG. Rome has committed to facilitating the opening of a technological centre in Neuquén for training specialised workers in energy and mining sector machinery.

The ENI-YPF agreement exemplifies this enhanced cooperation framework. "Eni was selected as a strategic partner for Argentina LNG due to its specific and distinctive know-how developed during its FLNG projects in Congo and Mozambique and its global leadership in the construction of projects with similar technological requirements," the Italian oil giant stated in a press release.

"Today's agreement, which follows the Memorandum of Understanding signed on 14 April 2025, represents a further strategic step forward towards the maturation of the ARGLNG project.”

This deal represents a crucial milestone for Argentina's energy ambitions and Milei’s broader strategy to attract foreign investment. The project's success could significantly boost Argentina's export revenues and position the country as a major LNG supplier. While Argentina's challenging economic environment, which includes stubborn inflation and steep poverty levels, remains a key factor for investors to monitor, this project could play a major role in advancing Milei's bold economic reforms.

"Today's meeting also allowed us to review the main themes of the international agenda and to reaffirm our full support for a just and lasting peace in Ukraine, our shared vision of the centrality of transatlantic relations, and our common commitment to the fight against transnational organised crime and human trafficking,” Meloni wrote on X.

YPF and Eni hope to export the first LNG cargoes by 2027. Milei has earmarked LNG development as a key pillar in the South American country’s development plan.

Vaca Muerte offers enormous potential for Argentina’s natural gas industry stretching across a total area of about 30,000 square kilometres. It possesses the world’s second biggest shale gas reserves and fourth largest shale oil reserves.

Once operational, Buenos Aires expects Argentina LNG to bring in about $7bn annually from FLNG terminals located in Rio Negro province’s San Matias Gulf.