Petronas and YPF to work on large LNG export plant in Argentina

Malaysia’s energy giant Petronas and Argentina’s state-owned oil and gas company YPF are joining forces to develop a large LNG export project in Argentina to liquefy natural gas from Vaca Muerta’s vast shale gas resources.

YPF and a Petronas’ unit in Argentina signed a joint study and development agreement on Thursday to work on the potential development of the Argentina integrated LNG project, Argentina GNL.

The project will include upstream gas production, dedicated pipeline and infrastructure development, LNG production, as well as marketing and shipping.

According to YPF, the first phase of the project would have a production of 5 million tonnes of LNG and would cost about $10 billion.

In the future, the capacity could rise to 25 million tonnes, YPF said.

Boosting cooperation

Besides the LNG project, Petronas and YPF signed a memorandum of understanding to pursue collaboration in Argentina in other areas, including upstream oil, petrochemicals, and clean energy solutions.

“The final investment decision for the projects will be undertaken after diligent technical and commercial assessment has been conducted, backed by conducive fiscal terms, legislation and policies,” Petronas said in a statement.

Petronas’ strategic alliance with YPF began in 2014 through its partnership in the La Amarga Chica project, Vaca Muerta, as part of its growth aspiration in the Americas.

“Petronas’ expertise in integrated LNG and unconventional plays will add value to the intent and synergy of both parties in further exploring potential LNG opportunities in Argentina, leveraging on Vaca Muerta’s vast unconventional gas resources,” Petronas CEO Tengku Muhammad Taufik said in the statement.

Worth mentioning here, YPF previously terminated a charter deal with Belgium’s Exmar for the Tango floating LNG producer. The two firms settled the dispute in 2020.

Argentina is also an LNG importer. Excelerate Energy’s 150,900-cbm FSRU Exemplar recently left the country after supplying regasified LNG during the peak winter demand.

- Advertisements -

Most Popular

Seapeak says working on charter and other opportunities for six LNG carriers

Stonepeak's Seapeak is pursuing various opportunities relating to six of its liquefied natural gas (LNG) carriers which are scheduled...

VTTI, IKAV to take majority stake in Italy’s Adriatic LNG terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, joined forces with German asset manager IKAV to...

Deutsche ReGas: Mukran FSRU welcomes first LNG tanker

LNG terminal operator Deutsche ReGas has received the first LNG tanker at its FSRU-based LNG import facility in Germany’s...

More News Like This

Argentina’s YPF launches engineering tender for floating LNG units

Argentina’s state-owned oil and gas company YPF launched a tender for engineering work for floating LNG units as part...

Malaysia’s Petronas logs lower LNG sales in 2023

Malaysian energy giant Petronas reported a drop in its 2023 liquefied natural gas (LNG) sales, while its profit decreased...

YPF expects FID on first phase of Argentina LNG project in 2025

Argentina’s state-owned oil and gas company YPF expects to take a final investment decision on the first phase of...

Fratelli Cosulich takes delivery of second LNG bunkering ship in China

China’s Nantong CIMC Sinopacific Offshore & Engineering (CIMC SOE) has handed over the second LNG bunkering vessel to Italian...