YPF, Shell sign agreement for LNG project

According to a joint statement from both companies, YPF and Shell have signed an agreement to develop Argentina LNG, a gas liquefaction project for export to global markets.

The agreement, signed in The Hague, Netherlands, establishes that Shell will join the project, with both parties committing to advance the development of the first phase of the Argentina LNG project.

This initial phase involves a liquefaction capacity of 10 million tons per year (MTPA), according to the statement.

"We are proud that Shell, a global leader in LNG production, is joining the project. As a pioneer in the LNG market, Shell's knowledge and experience will be essential in helping position Argentina as a reliable and competitive global energy supplier," said YPF President Horacio Marín.

With Shell's entry into the first phase of Argentina LNG, Petronas' participation as YPF's partner in the project ends. However, YPF and Petronas will continue working together on the development of La Amarga Chica field in Vaca Muerta, which holds the world's second-largest unconventional gas reserves and the fourth-largest unconventional oil reserves.

Argentina LNG encompasses the production of gas in dedicated blocks in Vaca Muerta, its transport through a 580-kilometer dedicated pipeline, and its processing and liquefaction at a terminal to be built in Sierra Grande, located in the Patagonian province of Río Negro.