Italian energy firm and United Arab Emirates’ energy company XRG have acquired stakes in the upstream assets of Argentina LNG, the two companies announced on June 29.

The transactions consist of a sales and purchase agreement (SPA) for the acquisition of a 32% stake each for Argentina LNG’s three upstream blocks. The Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks are all part of the Vaca Muerta basin and will serve as feedgas for Argentina LNG.

With Eni and XRG both holding 32% stakes, the remaining 36% interest will be held by Argentina’s state-owned energy company YPF.

“Vaca Muerta is one of the world's richest unconventional basins in terms of resources: our participation positions us across the entire value chain, from Argentine upstream to the supply of LNG to international customers, creating value while contributing to global energy security," Eni chief operating officer global natural resources, Guido Brusco, said in a statement.

“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,” Mohamed Al Aryani, XRG president of international gas added. 

The first phase of Argentina LNG is expected to produce 12mn tonnes per year (tpy) of LNG by 2030 through two floating liquefaction units, each with a capacity of 6mn tpy.

A second phase of the project is also under consideration, which would expand output to 18mn tpy with exports of the super-chilled fuel and related products projected to generate as much as $20 bn per year.

Shell had previously been a partner in the project, however in December 2025 it exited.