Eni CEO Meets Argentine President as LNG Project Nears Investment Decision
Argentina President Javier Milei met Eni CEO Claudio Descalzi in Paris on Friday to discuss energy investment and the progress of the Argentina LNG project, as its developers work toward a final investment decision before the end of the year.
The meeting, held during Argentina Week events in Paris, focused on developing the country's natural gas resources and expanding Argentina's position in international energy markets, according to Eni.
Argentina LNG, being developed by Eni, state-controlled YPF and Abu Dhabi-based XRG, is designed to monetize Vaca Muerta gas through an integrated production, processing, transportation and export system.
The initial development would have LNG production capacity of 12 million tonnes per annum, using two floating LNG facilities capable of producing 6 million tonnes annually each. Production is currently scheduled to begin in 2030, while the partners are evaluating an expansion that could lift capacity to 18 million tonnes per year.
The developers have steadily advanced the project during 2026. Eni, YPF and XRG signed a binding joint development agreement in February covering the 12-mtpa phase.
In June, Eni agreed to acquire a 32% interest in the Meseta Buena Esperanza, Aguada Villanueva and Las Tacanas blocks in Vaca Muerta, giving the Italian energy major a direct upstream position in acreage intended to supply the LNG development. At the time, completion of that transaction remained subject to regulatory approvals.
The project also applied in August to enter Argentina's Large Investment Incentive Regime, or RIGI, a step the consortium described as a milestone toward the planned year-end investment decision. The two FLNG units are expected to be located offshore Río Negro province.
For Argentina, the development represents an effort to translate Vaca Muerta's large unconventional gas resources into sustained LNG exports. For Eni, it would add another major floating LNG development to a portfolio that already includes projects using FLNG technology elsewhere in the world.
Eni said Friday that Milei and Descalzi also discussed the importance of a stable framework for long-term energy investment as the partners advance the capital-intensive project. The company has identified international markets, including Europe, as potential destinations for future Argentine LNG supplies.
By Charles Kennedy for Oilprice.com
TotalEnergies to invest $10 billion in Argentina, CEO Pouyanne says
French oil company TotalEnergies (EPA: TTE) plans to invest $10 billion in Argentina, Chief Executive Patrick Pouyanne said on Thursday at a conference in Paris.
The investment will be spread across different projects, including the drilling of new wells in Tierra del Fuego and an expansion of its gas production in Neuquen.
“We want to enhance production to 16 million cubic metres per day,” Pouyanne said, adding that investments of $4 billion to $5 billion are expected over the next 10 years.
TotalEnergies accounts for around a quarter of Argentina’s gas production, according to the company’s website. The energy firm is targeting growth of 4% in energy output annually through 2030 and between 2% and 3% in oil and gas output between 2030 and 2035, it told investors earlier this week.
Pouyanne spoke at an investment conference in Paris as Argentine President Javier Milei visits France as part of a broader push to attract foreign capital. Milei is due to meet French President Emmanuel Macron later on Thursday, with Buenos Aires promoting opportunities in strategic sectors such as energy, mining and infrastructure.
Argentina’s Vaca Muerta shale formation, one of the world’s largest unconventional oil and gas reserves, produced 670,000 barrels of oil and 95 million cubic metres of natural gas per day in August. That accounted for 72% of Argentina’s total oil output and 62% of its gas production, according to consultancy GKC.
The formation has become a cornerstone of Argentina’s energy growth strategy and a key source of future export revenue. State-run energy company YPF projects that by 2031 Vaca Muerta will generate $50 billion in export dollars, potentially rivaling Argentina’s agriculture sector.
(Reporting by Lucinda Elliott and Inti Landauro. Additional reporting by Dominique Patton in Paris and Eliana Raszewski in Buenos Aires. Editing by Sudip Kar-Gupta, David Goodman and Mark Porter)
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