Eni and Argentina’s state-backed energy major YPF have signed a non-binding agreement with XRG, a subsidiary of the Abu Dhabi National Oil Company (ADNOC) Group, to explore potential collaboration on the 12 million tonnes per annum (MTPA) liquefied natural gas (LNG) phase of the Argentina LNG (ARGLNG) project — a cornerstone development aimed at turning the country into a major LNG exporter by 2030.
The agreement establishes a framework for cooperation toward a Joint Development Agreement (JDA), potentially paving the way for XRG’s participation in the project and helping advance the Final Investment Decision (FID).
ARGLNG is an ambitious, integrated upstream-midstream initiative designed to harness the vast gas reserves of Argentina’s onshore Vaca Muerta shale formation. The project targets the export of up to 30 MTPA of LNG by the end of the decade, developed in multiple phases.
Under the Final Technical Project Description signed by Eni and YPF in October, the first phase includes two floating liquefied natural gas (FLNG) units with a combined capacity of 12 MTPA—equivalent to about 18 billion cubic meters of natural gas annually. The project scope encompasses gas production, processing, and transportation, as well as the valorization and export of associated liquids.
The potential entry of ADNOC’s XRG would add financial and technical strength to the partnership, aligning with ADNOC’s expanding global LNG portfolio and deepening its strategic collaboration with Eni. The two companies already work together on major projects in the United Arab Emirates and other international markets.
Argentina’s Vaca Muerta shale play—one of the world’s largest unconventional gas resources—has been central to the country’s plans to shift from an energy importer to a significant exporter. The ARGLNG project represents a major step in that direction, offering both a boost to domestic production and an avenue to capture global LNG demand, particularly in Asia and Europe.
If realized, ARGLNG would position Argentina among the top LNG exporters by the next decade, marking a transformative milestone for the nation’s energy sector and a new frontier for international oil and gas cooperation.
By Charles Kennedy for Oilprice.com
ADNOC Secures 15-Year LNG Supply Deal with Shell for Ruwais Project
Abu Dhabi National Oil Company (ADNOC) has signed a 15-year sales and purchase agreement with Shell International Trading Middle East Limited for up to 1 million tons per annum (mtpa) of liquefied natural gas (LNG) from the Ruwais LNG project, marking ADNOC’s first long-term LNG deal with Shell and the eighth such offtake agreement for the facility.
The agreement, signed during ADIPEC 2025, converts a prior Heads of Agreement into a definitive deal and brings ADNOC’s total contracted LNG volumes from Ruwais to more than 8 mtpa—over 80% of the project’s 9.6 mtpa capacity—just 16 months after the project’s final investment decision (FID).
The Ruwais LNG project, currently under development in Al Ruwais Industrial City, is set to become the first LNG export terminal in the Middle East and Africa powered entirely by clean energy. Once operational in Q4 2028, it will more than double ADNOC Gas’s existing LNG capacity to roughly 15 mtpa. The plant’s two 4.8 mtpa liquefaction trains will leverage artificial intelligence and advanced technologies to improve safety, efficiency, and emissions performance.
The deal with Shell, which holds a 10% stake in the Ruwais project through its subsidiary Shell Overseas Holdings Limited, underscores ADNOC’s rapid progress in commercializing Ruwais and its commitment to expanding its lower-carbon LNG portfolio. The speed with which ADNOC has secured long-term offtake commitments—achieving in just over a year what typically takes several years for large-scale projects—sets a new industry benchmark.
For Shell, the agreement strengthens a strategic partnership with ADNOC that spans more than half a century and supports its efforts to grow its LNG trading and marketing business amid tightening global gas supplies and rising demand for lower-carbon energy sources.
The Ruwais facility’s low-carbon profile aligns with ADNOC’s broader decarbonization strategy and the UAE’s national push to position itself as a leading global supplier of cleaner energy. The deal also highlights the growing importance of long-term LNG contracts as buyers seek supply security in an increasingly volatile global energy market.
By Charles Kennedy for Oilprice.com
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