Eni, YPF Advance Toward FID on Vaca Muerta LNG Development in Argentina

Eni and Argentina’s YPF are nearing a final investment decision on a 12 MMtpy liquefied natural gas export project in the Vaca Muerta basin, with a front-end engineering agreement expected this week, according to Italy’s foreign minister.

(Reuters) — Eni and Argentina's YPF are making progress on the Vaca Muerta liquefied natural gas project, Italy's foreign minister said on Oct. 7, with a final investment decision for the initiative expected soon.

"I welcome with satisfaction the news of significant progress in the contacts between Eni and YPF for the liquefied natural gas export project from the Vaca Muerta basin," Antonio Tajani said, speaking at the Italy, Latin America and Caribbean Conference in Rome.

Eni and YPF in June signed an accord to cooperate on the development of gas resources from the Vaca Muerta field.

At that time, Eni said the deal would cover production, treatment, transportation and liquefaction of gas through floating units for a total capacity of 12 million metric tons per year (MMtpy).

Eni has developed know-how on floating units for LNG as it has been managing similar projects in Congo and Mozambique.

The two energy companies are due to ink a front-end engineering and design agreement for the project at a ceremony in Buenos Aires on Oct. 10, state-controlled YPF said late on Oct. 6.