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Argentina’s YPF and Shell Strike $50 Billion Deal
Argentina’s YPF has hooked Shell for a $50 billion LNG project that could put the country’s energy game on the global map. Announced Thursday, the deal sees Shell stepping in to kick off the first phase of Argentina LNG, aiming to churn out 10 million metric tons of liquefied natural gas per year. That’s a lot of gas and a big leap for a country that’s been itching to cash in on its vast reserves.
The project, drawing from the mammoth Vaca Muerta shale formation—the world’s second-largest unconventional gas reserve—plans to ship the goods via pipelines to Rio Negro and launch LNG exports from there. For now, they’ll rely on LNG vessels, but future phases could see onshore facilities sprouting up.
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YPF President Horacio Marin hailed the deal, calling Shell a global leader in LNG. And he’s not wrong—Shell knows its way around liquefaction plants. Meanwhile, Shell chimed in, saying the project aligns with its growing ambitions in the LNG market, which has been red-hot globally.
But not everyone’s sticking around for the ride. Petronas, which was originally in on this project, is out. The Malaysian energy giant will still collaborate with YPF on Vaca Muerta’s La Amarga Chica area, but this LNG deal now belongs to YPF and Shell.
Why does it matter? Argentina’s LNG gamble isn’t just about energy independence; it’s about turning natural gas into a global cash cow. With Europe and Asia clamoring for LNG post-Russian supply shocks, Argentina’s timing couldn’t be better.
Whether it can stick the landing is another story.
For now, this partnership could be the ticket to turning Argentina’s shale dreams into a global energy powerhouse—and maybe a long-awaited economic lifeline.
By Julianne Geiger for Oilprice.com
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Julianne Geiger
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.
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DoRight Deikins on December 19 2024 said:
«Shell knows its way around liquefaction plants» Yes, it does. Not much is said about the KMI/Shell colaboration in Savannah, GA. That’s because it’s been running like a dream, both for KMI and for Shell. As I recall Shell bought their total output for 20 years (?)
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