December 04, 2025 [Reuters]- The chief executive of Argentina’s state-controlled energy company YPF expects a final investment decision on a $20 billion, 12 million metric ton per year liquefied natural gas project around the middle of next year, he told Reuters on Thursday.

Horacio Marin added that he expected YPF and its partners in the project, Eni and Adnoc’s [RIC:RIC:ADNOC.UL] XRG unit, to have in the region of a third each in equity.

Shell told Reuters it stepped away from a separate phase of the Argentina LNG project, a a project development agreement with YPF. It cited a significant change in the project scope as its reason for exiting.

Marin said the Shell-related phase had halved to 6 mtpa from 12 mtpa, adding that the project phase involving Eni and XRG was the priority and YPF would seek another partner to replace Shell.

Exports from the 12 mtpa project phase involving Eni and XRG will likely start in 2030 or 2031, or four years from the potential FID in mid-2026, Marin said.

Marin’s overall ambition was to bring the YPF-led parts of the Argentina LNG project to 18 mtpa.

YPF will use JP Morgan to seek project financing in early 2026 for the 12 mtpa project phase, Marin said. Financing typically covers 70% to 80% of such a project, he added.

Assumptions for the project are based on current LNG prices to Asia, Marin said. Argentine LNG exports to Asia are more competitive than U.S. exports to Asia, but less competitive than U.S. exports to Europe, he said.

YPF could introduce dividends in 2028 or 2029 depending on oil and gas prices, Marin added.