YPF Aims to Enhance Liquefied Natural Gas Exports and Consolidate Investments for Vaca Muerta Project
Argentina's LNG (Liquefied Natural Gas) project, a joint venture between YPF and international partners Shell and ENI, is making significant strides. The project, which includes phases 2 and 3, is now projected to reach a combined capacity of 18 MTPA (Million Tonnes Per Annum) by 2029.
The initial plan for phase 2 was to reach 10 MTPA, but it has since been increased to 12 MTPA. Phase 1, currently underway, has a capacity of 5.95 MTPA, with 2.45 MTPA set to begin sales from spring 2027. Phase 3, another joint venture between YPF and ENI, remains at 12 MTPA and will also commence in 2029.
YPF has been actively acquiring assets to support the project. In 2021, the company purchased the Rincon de la Ceniza field from the French multinational TotalEnergies for approximately US$ 500 million. This field, known for containing shale oil, will contribute to the project's ambitions.
To further advance the LNG exports, YPF is negotiating with ENI, Shell, and other market actors. The project is associated with Pan American Energy (PAE), YPF, Pampa Energía, British Harbour Energy, and Norwegian Golar LNG. The partners also include the consortium Southern Energy SA (SESA), which includes Pan American Energy, Pampa Energía, Harbour Energy, and Golar LNG.
The infrastructure of phases 2 and 3 will be integrated to reduce costs. This integration will also enable the utilization of wet gas, unconventional fields, and increase exports. Wet gas is a valuable resource for the petrochemical industry, gas cylinders, and fertilizers.
Recently, Pluspetrol announced the "Vaca Muerta Liquids" project, a plant to process the liquids from natural gas. This project could potentially allow Pluspetrol to sell an additional US$ 5,000 million worth of products abroad each year. The annual export revenues for phases 2 and 3 of Argentina LNG are estimated to be around US$ 7,500 million.
The first quarter of 2026 is when both phases will make a final investment decision. The project, if successful, could significantly boost Argentina's economy and position it as a key player in the global LNG market.
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