Argentina Unleashes Shale Power with Bold Offshore LNG Move

YPF and Eni partner on floating LNG units to export gas from Vaca Muerta, aiming for 30mn tonnes annually by 2030

9 Jun 2025

Argentina is betting big on a floating future for its shale gas. In a landmark deal signed June 6, state-run YPF teamed up with Italian energy giant Eni to deploy offshore liquefied natural gas (LNG) units aimed at cracking open the full potential of the Vaca Muerta formation, one of the world’s largest untapped shale gas reserves.

Instead of relying on costly pipelines and onshore terminals, the project will use two floating LNG units anchored off the Río Negro coast. These vessels will handle gas liquefaction at sea, a move designed to leapfrog Argentina’s longstanding infrastructure hurdles and fast-track exports.

The initial goal: process 12 million tonnes of LNG per year. By 2030, that number could climb to 30 million, enough to shift Argentina from a domestic gas player to a serious global exporter, especially to energy-hungry markets in Europe and Asia.

“This agreement is a milestone in turning our shale resources into global opportunities,” said YPF CEO Horacio Marín at the signing ceremony in Rome.

Vaca Muerta has been hailed for years as a game-changing resource. But development has lagged due to Argentina’s economic instability and limited midstream capacity. The floating LNG model offers a way around both, providing scalability and reducing exposure to domestic risks.

For Eni, the deal is a strategic expansion into a region with high production potential. For Argentina, it’s a rare shot at energy relevance and revenue on the world stage.

Challenges remain. Inflation, political turbulence, and investment hesitancy still cloud the horizon. But by skipping the wait for onshore infrastructure and embracing offshore tech, Argentina may finally be on the brink of delivering its long-promised shale boom.

Whether the world follows its lead remains to be seen. But for now, Argentina is floating a bold new idea and watching to see where the current takes it.