Can Argentina Turn Shale Into a Global LNG Play?

YPF, Eni, and XRG push Argentina closer to global LNG relevance with a fast-track plan anchored in Vaca Muerta

19 Nov 2025

Argentina is once again promising to turn its shale bounty into export clout. A new partnership between YPF, Eni and XRG, the investment arm of ADNOC, has given a rare lift to the idea that the country could become a meaningful supplier of liquefied natural gas. The market is paying attention because newcomers with scale are uncommon.

The effort centres on Vaca Muerta, the vast shale patch that has long tempted foreign firms but advanced only in bursts. The trio aims to change this by installing floating LNG units on the Atlantic coast. Such kit can be deployed faster than onshore plants, offering a quicker route to buyers in Europe and Asia.

Executives sound encouraged. A senior YPF figure calls the scheme Argentina’s most credible path into the LNG trade. Eni managers stress the shorter timelines made possible by floating gear. Analysts reckon the move could shift capital flows across South America and spark new demand for services and infrastructure.

The partners have set ambitious targets: initial exports of 12m tonnes a year, with scope to edge towards 30m by 2030. Achieving that will require steady building work, predictable rules and global prices strong enough to back long term deals.

Plenty could go wrong. Argentina still needs to lock in export rules and financial terms to reassure investors. Fresh supply from America, Qatar and parts of Africa is also coming. Delays in Buenos Aires could leave Argentina scrambling for buyers as competition grows.

Yet optimism lingers. Vaca Muerta’s output continues to attract global firms, and floating units lower upfront costs. If momentum holds, more outsiders may pile into South America’s shale, creating jobs and reshaping the region’s energy map.

For now, the world is waiting to see whether this long promised leap will finally lift Argentina into the top tier of LNG exporters.