Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTCharles KennedyMon, June 29, 2026 at 3:44 PM GMT+2 2 min readItalian energy major Eni has signed an agreement to acquire a 32% stake in three unconventional gas blocks in Argentina's Vaca Muerta shale formation, strengthening its position in the country's flagship LNG export ambitions.The sale and purchase agreement covers the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks. The transaction remains subject to regulatory approvals. Once completed, ownership of the assets will be split between YPF (36%), Eni (32%), and XRG (32%).The upstream assets will supply gas to the Argentina LNG project, an integrated upstream and midstream development designed to monetize Vaca Muerta's vast shale gas resources. The project is expected to support 12 million metric tons per year (mtpa) of LNG export capacity through two floating LNG (FLNG) units, each capable of producing 6 mtpa.Eni said the investment aligns with its strategy of building integrated gas value chains that combine upstream production with LNG exports and marketing. The company has increasingly focused on FLNG developments globally as demand for flexible LNG supply continues to grow."Our entry into Vaca Muerta... strengthens Eni's ability to develop world-scale gas resources and convert them into competitive LNG for international markets," said Guido Brusco, Eni's Chief Operating Officer for Global Natural Resources.XRG, ADNOC's international investment platform, said the transaction provides direct exposure to one of the world's largest unconventional gas resources while supporting Argentina's emergence as a long-term LNG supplier. The company highlighted the strategic partnership with YPF, Argentina's state-controlled energy producer, and Eni, a leading developer of floating LNG projects.YPF Chairman and CEO Horacio Marín said bringing Eni and XRG into the upstream segment strengthens the project's integrated value chain and advances its development at a global scale.The deal marks another milestone for the Argentina LNG initiative, which seeks to transform the country's abundant Vaca Muerta shale resources into export volumes targeting international markets. The project reflects broader industry efforts to develop new LNG supply sources amid rising global gas demand and growing interest in floating liquefaction technology.By Charles Kennedy for Oilprice.comMore Top Reads From Oilprice.comMiddle East Oil Production Rebounds to 15 Million Bpd