YPF Partners with Eni, XRG on 12M Ton LNG Project, JPMorgan Sees 44% Upside
YPF on Feb 12 signed a joint development agreement with Eni and XRG to advance its Argentina LNG project at Vaca Muerta, targeting 12 million metric tons per year using two floating liquefaction units. JPMorgan raised its price target to $54, implying 44% upside ahead of FID in 2H 2026.
1. Joint Development Agreement
On February 12, YPF Sociedad Anónima signed a joint development agreement with Eni and UAE-based XRG to advance the Argentina LNG project linked to Vaca Muerta. The partners will commence front-end engineering and design alongside key technical, commercial and financing workstreams.
2. Project Scope and Timeline
Argentina LNG is structured around two floating liquefaction units expected to produce 12 million metric tons annually. YPF aims to secure a final investment decision in the second half of 2026, positioning the venture as one of the leading global LNG projects.
3. Analyst Price Target Revision
JPMorgan raised its price target on YPF shares to $54 while maintaining an overweight rating, reflecting confidence in the LNG project's value creation. The revision implies an approximate 44% upside for investors as the company progresses toward the FID milestone.