XRG, the international investment arm of Abu Dhabi oil company ADNOC, has agreed to take a 32% stake in three upstream blocks in Argentina that will supply gas to the country’s first LNG export terminal — adding to the growing list of overseas LNG deals by Gulf energy majors.
XRG, which is partnering with Italian major Eni and Argentina’s YPF, has not said how much the investment is worth. It sits in a portfolio that already includes the Rio Grande LNG project in the US, Azerbaijan’s Southern Gas Corridor, and the Rovuma LNG development in Mozambique. Other Gulf energy majors have made similar bets: QatarEnergy has a stake in Golden Pass LNG in Texas, while Saudi Aramco has an interest in the nearby Port Arthur LNG terminal.
At a time when exports from their home markets have been severely constrained, such international investments are only rising in importance. There have been some LNG shipments from the Gulf in recent days — vessels loaded with gas from ADNOC and QatarEnergy passed through the Strait of Hormuz, heading to India and China respectively — but the flows remain below prewar levels, amid sporadic Iranian attacks on ships.