Eni and YPF Join Forces to Fast-Track Argentina's LNG Exports

Eni SpA E, the Italian energy giant, has signed an agreement with Argentina’s state-backed oil and gas major, YPF Sociedad Anonima (YPF), to advance a large-scale LNG project on the country’s Atlantic coast. The memorandum of understanding (MoU) is aimed at jointly evaluating a critical phase of the Argentina LNG initiative centered around the prolific Vaca Muerta shale formation.Under the agreement, the two companies will collaborate on developing the upstream, transportation, and liquefaction infrastructure required for two floating LNG (FLNG) units. These are expected to contribute 12 million tons per year (mtpa) of LNG, forming the foundation of the broader plan to export up to 30 mtpa by the decade’s end.Eni CEO Claudio Descalzi emphasized the company’s strong technical capabilities in floating LNG, drawing on its successful project experience in countries like Congo and Mozambique. This background appears to have been a key factor in YPF’s decision to bring Eni on board as a strategic partner in the Argentina LNG initiative.YPF president and CEO Horacio Daniel Marin conveyed optimism about the collaboration, viewing it as a step that could accelerate the project’s development. He also highlighted the rising global interest in securing natural gas supplies from the Vaca Muerta formation.This formation, one of the largest shale gas reserves outside North America, lies at the heart of the project. Gas extracted from this resource will be transported via a 580-kilometer pipeline to the Sierra Grande Norte site in the Rio Negro Province.The first phase of the project involves two FLNG units located near the shore. Phase two will introduce a 10 mtpa onshore modular liquefaction plant, with an eventual third phase adding two more trains to reach a full capacity of 30 mtpa.YPF already holds a 54% stake in the Sierra Chata unconventional gas concession, operated in partnership with Pampa Energía. Located approximately 150 kilometers northwest of Neuquén, this asset is considered one of the most promising in Vaca Muerta.This new agreement builds on YPF’s previous LNG-related MoUs with Indian firms ONGC, ONGC Videsh and GAIL, as the Argentine company continues to position itself as a reliable exporter of natural gas.For Eni, the project fits squarely within its broader strategy to advance the energy transition. The company said that the move supports increased gas production while reducing emissions, contributing to its goal of achieving carbon neutrality by 2050.The MoU comes at a time when Eni is expanding its global LNG footprint. In Mozambique, Eni recently celebrated the 100th LNG cargo from its FLNG facility and secured government approval for the Coral Norte project, a testament to its growing expertise in delivering scalable LNG solutions.As the global gas market continues to tighten, the Eni-YPF collaboration could significantly enhance Argentina’s role in international energy exports while aligning with long-term energy transition goals.E’s Zacks Rank & Key PicksE currently has a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC and Delek Logistics Partners, LP DKL. Archrock and Delek Logistics Partners presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.Delek Logistics Partners manages and owns systems for moving and storing oil and other products. The company operates pipelines that transport crude oil and refined products like gasoline and diesel. DKL also collects crude oil from different areas and stores it in tanks.Delek Logistics Partners’ earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 79.75%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eni SpA (E): Free Stock Analysis Report YPF Sociedad Anonima (YPF): Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks