XRG confident Argentina will rise to the top of global LNG industry

XRG, the international energy investment unit of Adnoc, has pledged significant investment in Argentina's liquefied natural gas (LNG) sector in order to assist the country in becoming a leading player in the global industry. Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and executive chairman of XRG, expressed confidence in Argentina's Vaca Muerta shale oil and gas deposit located in the Neuquen Basin, which is the world's second-largest shale gas resource and the fourth-largest for shale oil.

XRG's stake in Argentina's LNG network was highlighted at the Argentina Week summit in Paris. The company did not disclose the exact value of its investment. In June, XRG and Italy's Eni signed agreements with Argentina's state-owned YPF to acquire shares in three upstream blocks to support a new LNG project. XRG's first phase of Argentina LNG is expected to produce 12 million tonnes annually, contributing to the company's goal of becoming one of the top five global gas players and establishing Latin America as a vital growth region for its portfolio.

Dr Al Jaber attributed XRG's confidence in Argentina's potential to the country's record oil production, its largest energy trade surplus in over three decades, and the improvements in the nation's investment environment, including the implementation of President Milei's Rigi investment framework. The Rigi initiative offers substantial tax, customs, and exchange benefits, as well as a solid legal framework to facilitate large-scale investments in Argentina.

XRG aims to double its asset value over the next decade and has been actively expanding its global investment portfolio.