Eni (E), Argentine energy company YPF Sociedad Anonima (YPF) and XRG said Thursday they have signed a binding joint development agreement to develop liquid natural gas in Argentina.

The project will involve Argentina's Vaca Muerta shale basin and is expected to deliver 12 million tons per year of LNG capacity, equally divided between two floating LNG facilities, the companies said.

The project will include production, processing, transportation and LNG export infrastructure, the companies said.

XRG is the international investment arm of the Abu Dhabi National Oil Company.

Financial terms were not disclosed.