The battle for the global LNG market is tracing back from the consumer end to the source extraction. Faced with the continuously growing demand for gas, Italy's Eni Group has given its answer: to head south to Argentina.

Capture the three major oil and gas blocks

Italian energy company Eni Group is advancing its resource expansion plan, planning to acquire three upstream oil and gas blocks in Argentina, which will be matched with local planned liquefied natural gas export projects.

Eni has officially signed an asset acquisition agreement to purchase a 32% stake in three oil and gas blocks located in the unconventional Wakamurta gas field, namely Messetubena Esperanza, Aguadaviranuva, and Rastakanas. Mohammed Al Ariani, the head of XRG International Natural Gas, stated that Argentina has enormous potential for natural gas production capacity growth, and local liquefied natural gas projects are a key lever to seize the global demand for gas.

The natural gas resources in the Wakamurta Basin have superior quality and broad development prospects. This cooperation transaction allows XRG to deeply participate in project construction and is expected to become a stable new source of liquefied natural gas supply worldwide in the future. The three oil and gas blocks belong to the Argentine liquefied natural gas integration project, which connects upstream mining and midstream processing links, fully excavates natural gas reserves in the basin, and stabilizes Argentina's supply position in the global liquefied natural gas market in the long run.

Open up gas supply and export channels

Guido Brusco, Chief Operating Officer of Eni Global Natural Resources, stated that the company has joined forces with YPF and XRG to enter the Wakamurta Basin, enhancing its comprehensive strength in large-scale gas field development and liquefied natural gas export. Wakamurta is one of the world's top unconventional oil and gas basins in terms of reserves. This cooperation enables Eni to fully cover the entire natural gas industry chain, from local extraction to overseas gas supply, while balancing corporate profits and global energy security. The natural gas produced by the block will be transported to two floating liquefied natural gas equipment, with an annual processing capacity of 6 million tons per unit. The total annual liquefied natural gas production of the entire project can reach 12 million tons.

This acquisition still requires regulatory approval. After the transaction is completed, YPF will hold 36% of the shares in the block, while Eni and XRG will each hold 32% of the shares. Ariani added that YPF is deeply involved in the Argentine energy industry and has ample experience in leading basin development; Eni has mature development technology for floating liquefied natural gas projects, and both parties are high-quality strategic partners.

Promote the maturity of local industries

This asset acquisition is a key milestone in the advancement of Argentina's liquefied natural gas project, in line with Eni's industrial development plan: enriching upstream natural gas assets, creating a fully integrated project chain, expanding the scale of liquefied natural gas exports, and helping to stabilize global energy supply and control costs. Keywords: Eni Group, Argentina, Energy

YPF Chairman and CEO Horacio Marin said that this cooperation will further promote the development of liquefied natural gas in Argentina. Eni and XRG will enter the upstream mining link, improve the entire project industry chain, and help create a world-class liquefied natural gas industry project.Editor/Gong Ziwei