Argentina’s state oil company YPF has signed a project development agreement in partnership with Shell to promote the development of the Argentina LNG project.
Argentina’s LNG initiative, touted as the country’s flagship LNG project, focuses on liquefying gas for international export.
This involves extracting gas from specific blocks in Vaca Muerta and transporting it via special pipelines. These pipelines will extend 580 kilometers to a processing and liquefaction facility to be built in Sierra Grande, Rio Negro, along the Atlantic coast.
The partnership, formalized in the Netherlands, marks Shell’s involvement in the first phase of the project, which targets annual production of ten million tonnes of LNG per year.
The two companies will work together to advance the project to the front-end engineering design phase.
YPF President Horacio Marin said: “We are proud that Shell, a global leader in LNG production, is joining the project. As a pioneer in the LNG market, Shell’s knowledge and experience will be instrumental in helping position Argentina as a reliable and competitive company. global energy supplier.”
The recent agreement marks the conclusion of Malaysian state oil company Petronas’ involvement in the Argentine LNG project.
However, Petronas will continue its collaboration with YPF in the development of the La Amarga Chica area within Vaca Muerta, recognized as the world’s second largest unconventional gas reserve and the fourth largest oil reserve.
Shell said in a separate statement that the LNG project “is in line with Shell’s plans to further grow its LNG business.”
YPF also recently authorized the construction of a new oil pipeline in partnership with Pan American Energy, Vista Energy and Pampa Energía to support exports from the Vaca Muerta Sur region.
The $3 billion Vaca Muerta Sur pipeline will include a loading/unloading terminal, monobuoys and storage facilities and will enter service in the fourth quarter of 2026.
It will initially process 550,000 barrels per day (bpd), with the potential to scale up to 700,000 bpd.
“YPF and Shell Sign Agreement to Develop Argentina LNG Project” was originally created and published by Offshore Technology, a brand owned by GlobalData.
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