Adnoc's XRG Backs Argentina's Ambition to Become a Global LNG Powerhouse

XRG, the international energy investment unit of Adnoc, has committed to investing in Argentina's liquefied natural gas sector to help the country achieve its goal of becoming a top player in the industry. Speaking at the Argentina Week summit in Paris on Thursday, Dr Sultan Al Jaber—Minister of Industry and Advanced Technology, executive chairman of XRG, and managing director and group chief executive of Adnoc—stated that XRG's participation reflects strong confidence in the scale and quality of Vaca Muerta.

Vaca Muerta is a 30,000 square kilometre unconventional shale oil and gas deposit located in the Neuquen Basin. It ranks as the world’s second-biggest shale gas resource and the fourth-largest for shale oil, though XRG did not disclose the financial value of its investment. In June, XRG and Italy's Eni signed agreements with Argentina’s YPF to acquire stakes in three upstream blocks, which will supply a new LNG project in the country.

The initial phase of Argentina LNG is engineered to produce 12 million tonnes annually. This output supports XRG’s broader ambition to rank among the top five global gas players while establishing Latin America as a vital new growth region within its portfolio. Dr Al Jaber also expressed optimism regarding the nation's improving investment climate and the collaborative capability of XRG, YPF, and Eni to deliver a globally competitive LNG project.

“Argentina has the ingredients to build a world-class LNG business,” Dr Al Jaber said. He highlighted that oil production is at record levels and noted that Argentina posted its largest energy trade surplus in over three decades last year, proving the country's capacity to deliver at scale. During Argentina Week, Dr Al Jaber met with Argentine President Javier Milei and participated in a panel alongside Horacio Marin, chairman and chief executive of YPF, and Claudio Descalzi, chief executive of Eni.

Dr Al Jaber emphasized that long-term energy projects require predictability and stability, noting that reforms led by President Milei—such as the new Rigi investment framework—are successfully strengthening Argentina's appeal to international investors. The Incentive Regime for Large Investments (Rigi) initiative provides significant tax, customs, and exchange benefits alongside a solid legal framework.

Furthermore, Dr Al Jaber noted that the success of Argentina's LNG sector will bring export earnings, business opportunities for local suppliers, and more than 40,000 skilled jobs, injecting billions back into the Argentine economy. XRG continues to aggressively expand its global portfolio with plans to double its asset value over the next decade, building on recent energy initiatives in Azerbaijan, Germany, and Venezuela. This partnership further deepens the relationship between the UAE and Argentina, which recently launched negotiations on a Comprehensive Economic Partnership Agreement.