Shell, YPF to develop Argentina LNG mega-project

BUENOS AIRES, December 19, 2024 – In a landmark deal, Argentina’s state-owned YPF has signed a deal with Shell to develop phase one of the USD 50-billion Argentina LNG project, YPF said on Thursday.

The initial phase of the country’s flagship LNG project aims to process 10 million tonnes per year.

Gas will be sourced from dedicated blocks in the Vaca Muerta shale play and be transported through 580 kilometres of pipelines to Sierra Grande in the Río Negro province, where the plant will be located.

The project is under development with a view to the eventual export of the commodity to global markets, making critical the participation of Shell, a key global gas trader.

“As a pioneer in the LNG market, Shell’s knowledge and experience will be instrumental in helping to position Argentina as a reliable and competitive global energy supplier,” YPF President Horacio Marin said.

The agreement follows the exit from the mega-project of Malaysia’s Petronas – announced in September – a company that will continue to play a role in other oil and gas developments in the country.

Earlier this week, YPF unveiled a deal to acquire 100% of Mobil Argentina, a key player in the Vaca Muerta shale.

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