YPF and Shell signed a Project Development Agreement for the first phase of development of the Argentina LNG project, with a liquefaction capacity of 10 million tons per year (MTPA).
The president and CEO of YPF, Horacio Marinand the Executive Vice President of LNG from Shell, Cederic Cremerssigned an agreement for the development of the “Argentina LNG” initiative in Río Negrowith gas Dead Cowas anticipated by this media on October 9.
The PDA (Project Development Agreement, for its English term) was signed in the city of Hague, in the Netherlands, and implies that Shell will join the project to replace the Malays of Petronas.
As reported YPF In a press release sent to Energy Reportthe companies committed to advance the development of the first phase of the project “Argentina LNG” until making the decision to enter the FEED (Front-End Engineering and Design) stage. This first phase implies a liquefaction capacity of 10 million tons per year (MTPA), they highlighted.
“We are proud that Shell, a world leader in LNG production, is joining the project. As a pioneer in the LNG market, Shell’s knowledge and experience will be instrumental in helping position Argentina as a reliable and competitive global energy supplier,” stated the president of YPF.
What will happen to Petronas?
With the entry of Shell to the development of the first phase of ARG LNGthe participation of Petronas as a partner of YPFstood out in the flag oil company.
Although they stressed that YPF and Petronas They will continue working on the development of the La Amarga Chica area in Vaca Muerta.
“YPF recognizes the valuable contribution of Petronas over the last two years, sharing its technical and commercial experience in the LNG market with the YPF teams,” they stressed in the press release.
“Joint work has contributed to the development of the ARG LNG project to its current stage and will allow new steps to be taken,” they added.
What the Argentina LNG project is about
Argentina LNG It is a project for the liquefaction of gas for export to world markets, which is included in Horacio Marín’s 4×4 plan for YPF.
The initiative includes gas production in dedicated blocks in dead cow, its transportation through dedicated 580 km long gas pipelines to a processing and liquefaction terminal that will be built in Sierra Grande, in the province Black Riveron the coasts of the Atlantic Ocean.
Source: Ambito
