Published by Global Banking & Finance Review®
Posted on October 7, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleEni and YPF are advancing on the Vaca Muerta LNG project, with a final investment decision expected soon, according to Italy's foreign minister.
MILAN (Reuters) -Eni and Argentina's YPF are making progress on the Vaca Muerta liquefied natural gas project, Italy's foreign minister said on Tuesday, 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.
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 Friday, state-controlled YPF said late on Monday.
(Reporting by Francesca Landini in Milan. Additional reporting by Eliana Raszewski in Buenos Aires. Editing by Mark Potter)
Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state at about -162°C for ease of storage and transport.
A final investment decision (FID) is a commitment by a company to proceed with a project after evaluating its feasibility and securing necessary funding.
The Vaca Muerta basin is a geological formation in Argentina known for its significant reserves of shale oil and gas, making it a key area for energy development.
Gas liquefaction is the process of cooling natural gas to a liquid state, which reduces its volume and allows for easier transportation.
Front-end engineering and design (FEED) is a critical phase in project development that involves detailed planning and design before construction begins.
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