UK energy giant Shell is to help Argentina’s state-run energy company, YPF to develop its LNG export potential, replacing PETRONAS.
YPF’s Executive Chairman, Horacio Marin, signed the agreement in the Netherlands with Shell’s LNG chief, Cederic Cremers, the company said in a statement yesterday.
Shell will help to develop the first phase of the ‘Argentina LNG’ project, which involves building FLNGs with capacity to export 10 mill tonnes of LNG per year.
However, no firm decision was taken to proceed with the engineering and design for the liquefaction units. That decision will be taken at a later date, it was explained.
To help procure the investment needed, President Milei - who is attempting to deregulate Argentina’s economy and open it up for business - has included LNG export projects in an incentives programme.
Shell’s interest comes as YPF tries to introduce a single LNG plan through a joint venture to bring its huge Vaca Muerta shale gas reserves to market.
YPF has already agreed to charter a FLNG from Golar LNG starting in 2027, in a deal with the Pan American Energy Group.
This week, YPF boosted its shale gas reserves by acquiring ExxonMobil’s stake in a field.
