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

XRG, a unit of Adnoc's international energy investment division, has announced plans to invest in Argentina's liquefied natural gas (LNG) industry. This commitment, led by Dr Sultan Al Jaber, the Minister of Industry and Advanced Technology, executive chairman of XRG, and managing director and group chief executive of Adnoc, was made during the Argentina Week summit in Paris.

Dr Al Jaber's confidence in Argentina's potential stems from the vast Vaca Muerta shale oil and gas deposit in the Neuquen Basin, the world's second-largest shale gas resource and the fourth-largest for shale oil. Although the exact value of the XRG investment remains undisclosed, the company's involvement in Argentina is seen as a significant step towards becoming a top player in the global LNG industry.

In June, XRG signed agreements with Argentina's YPF and Italy's Eni to acquire stakes in three upstream blocks, supporting the development of a new LNG project. The first phase of this project is expected to produce 12 million tonnes of LNG annually, bolstering XRG's ambition to become a leading global gas player and positioning Latin America as a key growth region for the company.

Dr Al Jaber praised Argentina's improving investment environment, highlighting the country's record oil production and the largest energy trade surplus in over three decades. He also emphasized the success of reforms led by Argentine President Javier Milei, including the new Rigi investment framework, which offers tax, customs, and exchange benefits to attract large-scale investments.

The success of Argentina's LNG industry is not only measured in export earnings, business for local suppliers, and skilled jobs, but also in the billions of dollars flowing back into the Argentine economy. Dr Al Jaber stressed the importance of diverse energy sources, reliable market routes, and reliable partners in securing a country's energy future.

The UAE and Argentina have recently launched negotiations on a Comprehensive Economic Partnership Agreement, further strengthening the deepening relationship between the two nations.