ENI S.p.A. shares fell Friday as the Italian energy major advanced plans for a large-scale liquefied natural gas hub in Argentina following high-level meetings in Buenos Aires.

The President of Argentina, Javier Milei, met with Claudio Descalzi, Eni’s chief executive, to review the company’s current footprint and potential new projects in the country.

Afterward, Descalzi joined YPF President and CEO Horacio Marín to sign the Final Technical Project Description, a key milestone toward a Final Investment Decision for the Argentina LNG initiative.

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The partners outlined a first LNG phase targeting 12 million tonnes per annum, or MTPA.

The concept calls for two floating liquefaction vessels (FLNG), each designed for 6 MTPA—roughly 9 billion cubic meters of gas per unit per year—supported by integrated upstream production, processing and pipeline infrastructure. The project also contemplates marketing and export of associated liquids.

The Argentina LNG program seeks to monetize the unconventional Vaca Muerta gas field for international markets, ultimately scaling in stages to as much as 30 MTPA.

Eni brings recent fast-track FLNG execution experience in Congo and Mozambique, while YPF contributes deep operational expertise in Vaca Muerta, one of the world’s largest shale plays.

“The specific and distinctive expertise we have developed in the FLNG projects in Congo and Mozambique makes us an ideal partner for implementing this type of project,” Descalzi said.

The companies framed Argentina LNG as aligned with Eni’s gas-focused transition strategy, citing goals of net-zero by 2050 and improved energy security and competitiveness for buyers.

Next steps include completing remaining technical, commercial and regulatory workstreams needed to reach FID on the initial 12 MTPA phase.

E Price Action: ENI shares are trading down 2.27% at $34.61 at the time of publication on Friday. The stock is 4.0% below its 52-week high, and it’s 11.1% above its 200-day moving average.

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