YPF signs tomorrow its incorporation into the PAE LNG project

With this novelty, the participation that the Argentine hydrocarbon company will have in the project was defined, which plans to export 11.5 million cubic meters per day of natural gaswith an investment of US$2.9 billion.

As this media learned, YPF will have 15% of the participation, so the company will be like this: and the company will be like this:

• 40% PAE
• 20% Pampa Energy
• 15% YPF
• 15% Harbor Energy
• 10% Golar LNG

What the PAE LNG project is about

He project led by Pan American Energy will allow export 11.5 million cubic meters per day of natural gas. Through an investment of 2.9 billion dollars in the next 10 years, and which is expected to reach almost 7 billion dollars Throughout its useful life, the project will allow the installation and operation of the Golar LNG “Hilli Episeyo” liquefaction vesselcontracted by Southern Energy, to bring it to the San Matías Gulf, on the coast of Río Negro.

The ship will be supplied with natural gas using the existing infrastructure and capacity of the system in the months of lower demand, with the ultimate objective of operating all year round, through investment in new infrastructure.

As revealed Energy Report, with the first stage of the project PAE, Pampa, Golar and now Harbor They expect to generate exports of US$750/US$800 million annually. But they are already thinking about the second, which would imply an additional investment for the construction of a dedicated gas pipeline of more than 600 km direct from the heart of Vaca Muerta to the San Matías Gulfbetween the towns of Sierra Grande and San Antonio Oeste, with which exports could be generated that would exceed the US$1 billion a year, with LNG sales all year round.

As estimated PAEwith this initiative more than 600 new jobs direct and indirect, predominantly local originduring the construction phase. Meanwhile, in the operation stage, around 850 jobs directly and indirectly.

The project was presented at the Incentive Regime for Large Investments (RIGI)which represents a key factor for the competitiveness of the project in the global LNG market. As this media learned, the initiative was noted in the Regime as ““Long-Term Strategic Export Project”according to the specification of the Bases law and regulatory decree 749/2024. According to PAE, they estimate operations for at least 20 years.

As reported Harbor through a statement sent to Energy Report, the agreement signed last Friday with PAE and Golar was to acquire a 15% share in the proposed development of the first LNG export project in Argentina, which will include the installation of a floating liquefaction ship off the coast of Black Riverto produce Liquefied Natural Gas destined for export markets.

With this acquisition, the amount of which was not disclosed, PAE retains -for now- 55% of the Southern Energy firm; Pampas 20%; Harbor 15% and Golar 10%. Taking into account that the Bulgheroni will maintain majority control of the company, YPF will have up to 4% left to acquire in the coming weeks.