YPF CEO Confirms Potential $20 Billion LNG Investment

December 4, 2025 – London – YPF (YPFDm.BA), Argentina’s state-controlled energy company, is targeting a final investment decision (FID) around mid-2026 for a major $20 billion liquefied natural gas (LNG) project, according to CEO Horacio Marin.

The proposed facility is expected to produce 12 million metric tons per year (mtpa) of LNG, with potential exports beginning around 2030-2031, roughly four years after the planned FID.

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Partnership Structure and Equity Plans

Marin indicated that YPF and its partners in the project—Italy’s Eni (ENI.MI) and Abu Dhabi National Oil Co’s (Adnoc) XRG unit—would each hold approximately a one-third equity stake in the development.

The CEO emphasized that this phase of the project, involving Eni and XRG, remains the priority for YPF, while the company is actively seeking a replacement partner for the phase previously involving Shell PLC (SHEL.L).

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Shell Exits LNG Phase, Project Scope Adjusted

Shell recently stepped away from a separate phase of the Argentina LNG development, citing a significant change in project scope. This Shell-related phase was reduced from 12 mtpa to 6 mtpa, according to Marin.

YPF’s overall ambition is to scale the LNG project to 18 mtpa, combining the different phases and potential partners to maximize Argentina’s LNG export capacity in the coming decade.

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Timeline and Export Outlook

• Mid-2026: Expected final investment decision (FID)
• 2030-2031: Potential start of LNG exports from the 12 mtpa phase
• Long-term: Expansion to 18 mtpa with additional partners

The project is part of Argentina’s broader push to expand its LNG export capabilities and capitalize on growing global demand for natural gas as countries transition to lower-carbon energy sources.

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Significance for Argentina and Global LNG Market

The YPF-led project positions Argentina as a key future LNG exporter, particularly to markets in Asia and Europe, which are seeking diversified gas supply amid geopolitical uncertainties.

Analysts note that the involvement of international energy majors like Eni and Adnoc adds credibility and financial backing, while replacing Shell ensures the project remains on track despite changes to the initial development plan.

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Conclusion

YPF’s $20 billion Argentina LNG project marks a significant milestone for the country’s energy sector, with mid-2026 targeted as the final investment decision. With strategic international partners and plans to expand to 18 mtpa, the project is set to boost Argentina’s LNG export potential and contribute to the global energy transition over the next decade.