Eni acquires a 32% stake in key Vaca Muerta gas blocks, advancing Argentina LNG development and strengthening global LNG supply capabilities.
Eni has signed a Sale and Purchase Agreement (SPA) to acquire a 32% stake in three upstream natural gas blocks—Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas—located within the highly prospective Vaca Muerta in Argentina. The acquisition marks a strategic milestone for Eni as it expands its upstream natural gas portfolio and reinforces its presence in one of the world’s most resource-rich unconventional hydrocarbon regions.
The completion of the transaction remains subject to customary regulatory approvals. Once finalized, ownership of the three upstream blocks will be divided among YPF with a 36% interest, while Eni and XRG will each hold a 32% stake. This partnership establishes a balanced ownership structure that combines YPF’s extensive domestic expertise with the international operational and commercial capabilities of Eni and XRG.
The acquired assets will play a central role in the broader Argentina LNG integrated development project, an ambitious upstream-to-midstream initiative designed to unlock the vast natural gas reserves of the Vaca Muerta basin. The project aims to position Argentina as a leading global exporter of liquefied natural gas (LNG) by monetizing its abundant shale gas resources. Gas produced from the three upstream blocks will supply two planned floating LNG (FLNG) facilities, each with a production capacity of 6 million metric tons per annum (MTPA), resulting in a combined LNG export capacity of 12 MTPA.
The integrated nature of the project is expected to enhance operational efficiency by connecting upstream gas production directly with LNG processing and export infrastructure. This value-chain approach is intended to improve project economics while creating a reliable source of LNG for international markets amid growing global demand for cleaner-burning fuels.
Commenting on the agreement, Guido Brusco, Chief Operating Officer of Global Natural Resources at Eni, stated that the company’s entry into the Vaca Muerta basin alongside YPF and XRG significantly strengthens its ability to develop large-scale unconventional gas resources and transform them into competitive LNG products for customers worldwide. He highlighted that Vaca Muerta is among the world's richest unconventional resource basins and emphasized that Eni’s participation enables the company to establish an integrated presence across the entire LNG value chain—from upstream gas production in Argentina to LNG exports for global markets. According to Brusco, the investment not only creates long-term value for stakeholders but also contributes to strengthening global energy security by diversifying LNG supply sources.
Mohamed Al Aryani, President of International Gas at XRG, also underscored Argentina’s growing importance in meeting future global natural gas demand. He noted that the Argentina LNG project has the potential to unlock significant value from the Vaca Muerta formation and provide reliable LNG supplies to international customers. Al Aryani described Vaca Muerta as one of the most attractive unconventional gas resources globally and said the transaction provides XRG with an opportunity to participate directly in a large-scale project with strong long-term growth prospects. He further expressed confidence in collaborating with YPF, recognized for its leadership in Argentina’s energy industry and expertise in developing Vaca Muerta, as well as with Eni, which has extensive experience in floating LNG developments worldwide.
Horacio Marín, Chairman and CEO of YPF, described the agreement as another important milestone in advancing the Argentina LNG project. He explained that bringing Eni and XRG into the upstream segment enhances the project's overall value chain, strengthens international partnerships, and accelerates progress toward developing the initiative on a global scale.
Overall, the transaction represents another significant step in advancing the Argentina LNG integrated development. It aligns closely with Eni’s long-term strategy of expanding and diversifying its upstream natural gas assets, developing integrated energy projects across the value chain, and increasing its LNG marketing portfolio. At the same time, the project is expected to improve the resilience, competitiveness, and security of global energy supplies while supporting Argentina’s ambition to emerge as a major LNG-exporting nation.
Impact on Products and Chemical Commodity Prices
Eni's acquisition of a 32% stake in key upstream gas blocks within Argentina's Vaca Muerta basin is expected to have a long-term positive impact on LNG and natural gas supply, although the immediate effect on commodity prices will be limited because the project is still under development. Once the integrated Argentina LNG project reaches commercial production, the additional 12 MTPA LNG export capacity could improve global LNG availability, easing supply tightness and moderating international natural gas prices. Lower and more stable natural gas costs would reduce feedstock and energy expenses for gas-based petrochemicals. Consequently, methanol, ammonia, urea, hydrogen, and downstream fertilizers tracked by ChemAnalyst may experience downward pricing pressure over the medium to long term, particularly in LNG-importing regions. Reduced energy costs could also improve production economics for chemicals such as ethylene, propylene, polyethylene, polypropylene, and PVC, supporting more stable supply and potentially limiting price volatility across global petrochemical markets.
