Petroliam Nasional Berhad (Petronas) and YPF SA have signed an MOU for joint development of a 5-million tonne/year (tpy) LNG plant in Argentina and collaboration in other areas, including upstream oil, petrochemicals, and clean energy. The companies anticipate LNG production to ultimately reach 25 million tpy.
Petronas said that the LNG project would leverage Vaca Muerta shale’s gas resources. The company has worked with YPF since 2014 in developing Vaca Muerta crude oil (OGJ Online, Aug. 28, 2014).
YPF and Petronas’s operating entity in Argentina, Petronas E&P Argentina SA, also executed a joint study and development agreement towards the Argentina Integrated LNG project which will encompass dedicated upstream natural gas production, pipeline and infrastructure development, the LNG plant, and marketing and shipping.
Final investment decision for the projects will follow technical and commercial assessment and is dependent on conducive financial and regulatory terms.
As of July 2019, Vaca Muerta held an estimated 308 tcf of dry, wet, and associated technically recoverable shale gas resources, according to the US Energy Information Agency. Argentina’s proved natural gas reserves are 14 tcf.