(The Energy Circle, 9 June) From Patagonia to the Mediterranean: YPF’s LNG strategy puts Argentina on the global gas map
At the 2025 Energy & Production Summit in Bariloche, Argentina took a major step towards becoming a global LNG powerhouse. Horacio Marín, President and CEO of state-run oil and gas company YPF, announced the imminent signing of a strategic investment agreement with Italy’s ENI—one of Europe’s largest integrated energy companies.
The deal will allow Argentina to export liquefied natural gas (LNG) from the vast unconventional reserves of Vaca Muerta, placing the country in a competitive position within the global energy market while helping to monetise its abundant natural gas resources.
Once seen as an improbable goal, Argentina's LNG export ambitions are rapidly becoming a concrete reality. As Marín noted, “LNG seemed like a utopia just 16 months ago—now it's within reach.” Central to this effort is the deployment of two of the world’s largest LNG vessels, each with a capacity of six million tonnes, to be stationed in Argentina as part of the agreement.
These floating LNG terminals represent a strategic pivot, enabling Argentina to scale up exports to 50 million cubic metres of gas in the early stages. This capacity will be further expanded as YPF plans to drill an additional 800 gas wells by 2031, a 50% increase from current development levels.
ENI’s inclusion is not merely financial; it brings critical offshore expertise to the table. With decades of experience in floating and subsea infrastructure, ENI will be instrumental in helping YPF overcome logistical and technological challenges, especially as the deployment of ultra-large LNG carriers demands advanced coordination.
This partnership also aligns with ENI’s broader strategy of securing diversified and reliable LNG supply sources, a necessity as Europe seeks alternatives to Russian gas and enhances its energy security post-Ukraine crisis.
Beyond the operational implications, the agreement carries significant geopolitical weight. YPF CEO Marín met directly with Italian Prime Minister Giorgia Meloni to solidify the investment pledge—demonstrating the deal’s political importance at the highest levels.
The collaboration is set to become one of the most important international energy agreements in Argentina’s recent history, opening doors to broader private sector participation and reinforcing investor confidence in Argentina’s hydrocarbons sector.
Rio Negro’s Governor, Pedro Pesatti, framed the region as “Argentina’s energy gateway to the world”, underscoring Patagonia’s growing role in the country’s energy diplomacy.
The deal with ENI is part of a larger national framework that includes the Virtual Midstream Operation System (VMOS)—Argentina’s first collaborative energy infrastructure initiative. By 2029, this system aims to facilitate up to $20 billion in energy exports, a transformative boost to Argentina’s trade balance and industrial output.
Additionally, the LNG expansion is expected to drive:
This agreement represents a significant opportunity for energy professionals, investors, and service providers in the traditional energy sector:
As YPF expands its LNG ambitions, Argentina is stepping into the global energy arena with clarity and purpose—aligning strategic resources with global market demand and international cooperation.
Conclusion: Argentina’s LNG Moment Has Arrived
With Vaca Muerta as the geological foundation and ENI as a strategic ally, Argentina is no longer just a regional player—it is emerging as a reliable LNG supplier with global reach. The deal reinforces YPF’s transformation from a domestic hydrocarbons champion to a global exporter, aligned with the world’s evolving energy matrix.
In a decade defined by transition, Argentina is proving that natural gas still has a vital role to play, particularly when deployed through efficient, export-focused partnerships.
