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“Shell has decided not to move forward with the initial phase of the Argentina LNG project. Shell participated in pre-FEED only,” the spokesperson said.
Argentina’s state-owned oil and gas company YPF and Shell agreed in December 2024 to commit to mature the development of this phase of the Argentina LNG project towards a decision to enter the front-end engineering and design (FEED) stage.
With Shell entering into the development of this phase of the Argentina LNG Project, Petronas’ participation as a partner of YPF has come to an end, YPF said at the time.
Shell decided not to proceed with the PDA to progress the development of the LNG project in Argentina.
“We continue to see Argentina as a potentially attractive growth market for LNG export. Therefore, Shell is continuing to explore expansion options with YPF for Argentina LNG,” the spokesperson said.
30 million tonnes
ARGLNG is a large-scale, integrated upstream and midstream gas development project designed to develop the resources of the onshore Vaca Muerta shale gas field and serve international markets, exporting up to 30 million tonnes of LNG per year in various independent phases by 2030.
YPF CEO Horacio Marin confirmed in September that the state-owned oil and gas company and its partners Eni and Shell expect to take final investment decisions on two stages of the Argentina LNG project in 2026.
In October, Eni signed the final technical project description with YPF for the third phase of the latter’s Argentina LNG export project.
This agreement followed the heads of agreement signed by the two companies in June this year.
The project involves the production, processing, transportation, and liquefaction of gas for export through two floating liquefaction units (FLNG) with a capacity of 6 mtpa, in addition to the valorisation and export of associated liquids.
Adnoc’s investment unit XRG recently also signed a non-binding agreement with YPF and Eni to join the 12 mtpa phase of the integrated Argentina LNG project.
(This article was updated to include further comments by a Shell spokesperson.)