Benzinga·2025-10-10 18:11Core Viewpoint - ENI S.p.A. is advancing plans for a large-scale liquefied natural gas hub in Argentina, which has led to a decline in its share price following high-level meetings in Buenos Aires [1]. Group 1: Project Development - ENI's CEO Claudio Descalzi met with Argentina's President Javier Milei to discuss the company's current operations and potential new projects in the country [1]. - Descalzi signed the Final Technical Project Description with YPF's CEO, marking a significant step towards a Final Investment Decision (FID) for the Argentina LNG initiative [2]. - The initial phase of the LNG project aims for a capacity of 12 million tonnes per annum (MTPA), utilizing two floating liquefaction vessels (FLNG) each designed for 6 MTPA, equating to approximately 9 billion cubic meters of gas per unit per year [3]. Group 2: Strategic Importance - The Argentina LNG program aims to monetize the unconventional Vaca Muerta gas field for international markets, with plans to scale up to as much as 30 MTPA [4]. - ENI's experience in fast-track FLNG projects in Congo and Mozambique positions it as a suitable partner for this initiative, while YPF brings operational expertise in Vaca Muerta, one of the largest shale plays globally [4][5]. - The project aligns with ENI's gas-focused transition strategy, which includes goals for net-zero emissions by 2050 and enhancing energy security and competitiveness for buyers [5]. Group 3: Market Reaction - Following the announcement, ENI shares fell by 2.27% to $34.61, which is 4.0% below its 52-week high and 11.1% above its 200-day moving average [6].