Abu Dhabi’s XRG, established last year as a transformational global investment company that creates value across natural gas, chemicals, and lower-carbon energy solutions, is in talks to invest in a liquefied natural gas project being developed by Argentina’s YPF SA.
According to Bloomberg, quoting sources close to the development but not willing to be identified, XRG is eyeing a stake in the project that plans to expand its LNG portfolio in Latin America, the US and Asia.
XRG recently decided not to pursue its Australian record bid of US$18.7 billion for Santos, one of the significant producers of gas energy in the world.
The government-owned YPF is developing the floating terminal as Argentina tries to tap global LNG demand and accelerate output of vast natural gas reserves in the Vaca Muerta shale basin. The project, which requires the construction of several liquefaction vessels, is designed to eventually produce 28 million tons of LNG annually. Shell Plc and Eni SpA are working with YPF on the project, but final investment decisions haven’t been made, Bloomberg said.
XRG did not comment, while Bloomberg’s sources said the talks are preliminary, and the company may ultimately decide not to pursue an investment.
XRG has already acquired a stake in NextDecade Corp’s Rio Grande LNG project that is being built in South Texas. It is also in the process of a US$17 billion takeover of Germany’s Covestro AG as it bets on lasting demand for gas and chemicals in the energy transition.
YPF Chief Executive Officer Horacio Marin met ADNOC CEO Sultan Al Jaber in Houston in March, and he is scheduled to visit Abu Dhabi next week to attend ADIPEC.
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