Argentina's LNG Vision Rises as Vaca Muerta Gains Fresh Momentum

Argentina has updated its investment rules for the Vaca Muerta shale basin, adding stronger tax and legal protections

20 Nov 2025

Argentina is once again testing whether its shale wealth can lift its global standing. On November 4th YPF, Italy’s Eni and XRG, the investment arm of ADNOC, signed a non-binding framework pact. It has revived hopes that the country may yet build an export industry for liquefied natural gas. Such firms seldom enter without sensing real potential, prompting cautious excitement in Buenos Aires.

The focus is Vaca Muerta, the vast shale formation long promoted as a national prize but slowed by patchy progress. The partners are studying floating LNG units along the Atlantic coast. These offshore systems can be built faster than traditional plants, offering earlier access to buyers in Europe and Asia if the venture moves to a firm commitment.

Executives are unusually upbeat. A senior YPF official calls the pact Argentina’s most credible route into the LNG market. Eni stresses the quicker build times that floating systems allow. Analysts say the move could redirect regional investment and spur demand for logistics and technical services.

The ambitions are large. The group sketches initial export volumes of around 12m tonnes a year, with scope to reach 30m tonnes by 2030. Achieving this depends on predictable rules, steady construction and global prices strong enough to support long-term contracts.

Many hurdles remain. Argentina must fix export terms and provide financial guarantees to persuade investors to shift from an exploratory pact to a binding deal. New supply from America, Qatar and parts of Africa is heading to market. Any political or regulatory drift in Buenos Aires could make it harder to secure long-term buyers.

Even so, momentum is real. Rising output from Vaca Muerta keeps drawing global players, and floating systems lower early costs while reducing construction risks. If conditions hold, more international firms may join in, bringing jobs and reshaping South America’s energy map.

For now, the world is watching to see whether Argentina can turn long-promised shale riches into lasting LNG clout.