ZACKSยท2025-06-09 13:41Core Insights - Eni S.p.A. has signed a memorandum of understanding with YPF for a $50 billion LNG project in Argentina, highlighting its potential involvement in one of South America's most ambitious energy initiatives [1][10] - The project aims to leverage Argentina's Vaca Muerta shale formation, which contains an estimated 308 trillion cubic feet of recoverable gas reserves, positioning Argentina as a key player in the global LNG market [6] Group 1: Project Overview - The MoU focuses on the initial development stage of the Argentina LNG project, which includes upstream, transportation, and gas liquefaction infrastructure, specifically covering two floating LNG units with a combined capacity of 12 million tons per annum [2][10] - Argentina LNG is structured in three phases, with the first phase involving the two FLNG units, the second phase including a 10 million tpa onshore liquefaction plant, and the third phase expanding that facility to increase output by another 10 million tpa, aiming for a total capacity of 30 million tpa by the end of the decade [5] Group 2: Strategic Importance - YPF's CEO expressed that the partnership with Eni is intended to accelerate the project's timeline, reflecting growing global interest in gas from the Vaca Muerta region [4] - Eni's CEO emphasized the company's unique expertise in FLNG, citing successful projects in Congo and Mozambique as reasons for YPF's selection of Eni [3] Group 3: Future Developments - YPF and Shell, the current developers of the Argentina LNG project, are expected to issue the front-end engineering and design tender for the first onshore liquefaction unit by August, with the FEED process anticipated to last for 10 months, leading to a final investment decision by mid-2026 [7]