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In December 2024, YPF and UK-based LNG giant Shell signed a project development agreement (PDA) for the first phase of the Argentina LNG export project.
Earlier this year, YPF also joined a floating LNG project developed by Pan American Energy, Golar LNG, and other partners.
YPF signed a participation agreement to acquire a 15 percent interest in Southern Energy, a company that is planning to develop the FLNG project in Argentina.
Three phases
Marin discussed the Argentina LNG project during YPF’s investor day in New York on April 11.
He said that YPF is making “very good” progress on the project offshore Río Negro province, which will be developed in three phases and will liquefy natural gas from Vaca Muerta shale gas fields.
Under the first phase, or Argentina LNG 1, YPF will enter the international LNG market via a tolling agreement.
“And we are in the finishing time of signature during this month. This will be, if that happens, the first one, and it will start exporting in 2027. There will be two ships and six million tons,” Marin said.
He probably referred to the Southern Energy project.
According to a presentation, this phase will have a dedicated pipeline, while FID is expected this year on this phase in which YPF plans to have a 20-30 percent stake.
Newbuilds
The second and the third phase of the Argentina LNG project includes newbuilds.
Shell is the strategic partner in Argentina LNG 2, Marin said.
“There are three supermajors as offtakers.. and to fund the project.. there is not other way to do it,” he said.
“We are in the process of FEED, and FID could be taken at the end of the next year,” Marin said.
Estimated Capex for this phase is $10 to $12 billion, and YPF expects to have a 30-35 percent stake in this phase.
This phase would have a capacity of 10 mtpa and two FLNGs, and the first production is expected in 2029/2030.
Moreover, the third phase of Argentina LNG would have a capacity of 12 mtpa and two FLNGs with exports expected in 2028/2029, as the presentation shows.
“I cannot tell a lot, but you can have, I will say, good news in the near future,” Marin said about this phase.
The presentation shows that FID for this phase could be taken in the fourth quarter of 2025, and YPF expects to have a 25 percent stake.
Initial preliminary discussions under negotiation point that there are 50 mtpa of LNG of offtake agreements under discussion, according to the presentation.
“There will be in a very short term, you will see in the news, that there is a supermajor as Shell that will be in the project,” Marin said.