The European Commission has signed a non-binding agreement with Argentina to facilitate a stable supply of liquefied fossil gas (LNG) to Europe in exchange for cooperation on green energy and Buenos Aires reigning in gas leakage.

Europe’s economic relations with Argentina, a country of more than 45 million people, are strong. Despite the geographical distance, EU investment in the country accounts for half of foreign investment.

Similarly, the bloc is Argentina’s third-largest trading partner, behind Brazil and China, as European Commission President Ursula von der Leyen stressed in June when visiting the country.

While the more comprehensive trade agreement between the EU and its Latin American counterpart, Mercosur, flounders, von der Leyen agreed on a bilateral agreement with Buenos Aires on Monday (17 July). It follows a similar agreement on materials agreed in June.

“Europe and Argentina are partnering for a more secure, sustainable and prosperous world,” she said.

The non-binding agreement hinges on four key aspects: hydrogen and its derivatives, renewables, energy efficiency, and liquefied natural gas (LNG).