Argentina's $20 Billion LNG Project Hits Milestone: FID Expected by 2026 Amid Partnership Reshuffles

YPF Sociedad Anonima, Argentina’s state-owned energy giant, is charging ahead with its transformative liquefied natural gas venture, projecting a final investment decision (FID) by 2026. The $20 billion LNG project, engineered to produce 12 million metric tons annually, represents a cornerstone play in Argentina’s energy strategy and aims to commence commercial exports by 2030 or 2031, contingent on achieving the FID target.

Strategic Partnership Evolution

The project’s current structure brings together YPF with Italian energy player Eni and Abu Dhabi National Oil Company’s investment arm XRG, with each partner holding roughly one-third equity stakes. This tri-party collaboration signals renewed momentum after significant restructuring within the initiative.

The partnership landscape shifted recently when Shell plc withdrew from a parallel phase of the Argentina LNG initiative. The British energy corporation, which had committed through a project development agreement the prior year, decided to step back following material changes to project scope and dynamics. The earlier iteration had projected 6 mtpa capacity—half the current ambition—before the framework was recalibrated upward to the present 12 mtpa specification.

Timeline and Export Outlook

YPF’s leadership anticipates that once the FID milestone is achieved, a four-year development horizon would position the project for first exports around 2030-2031. This sequencing places the LNG initiative on a critical path that hinges on reaching the investment decision benchmark within the next two years. The company is actively seeking a replacement partner to fill the vacancy left by Shell’s departure, ensuring the project maintains its commercial and technical momentum.

The LNG venture underscores Argentina’s commitment to leveraging its substantial natural gas reserves and positioning itself as a meaningful participant in global liquefied gas markets. The FID achievement by mid-2026 would validate the project’s commercial viability and unlock substantial capital deployment across engineering, procurement, and construction phases.