Argentina LNG seeks RIGI approval for $51-billion investment

The phased project involves infrastructure development, including wet gas production, processing plants, and pipelines, to harness Vaca Muerta's resources.

Key Highlights

  • YPF applied to join Argentina’s Large Investment Incentive Regime (RIGI) to advance the $51-million Argentina LNG project.
  • Argentina LNG aims to develop Argentina's Vaca Muerta natural gas resources into LNG for export.
  • Two floating liquefaction units (FLNG) will operate offshore Punta Colorada.
  • An integrated gas treatment plant will be built in Neuquén, with a planned start in 2030 and capacity expansion to 70 MMcmd.
  • Construction is scheduled from 2027 to 2030, with final investment decisions expected by yearend 2026, and LNG units operational by 2031.

YPF has applied to join Argentina’s Large Investment Incentive Regime to advance Argentina LNG, a $51-billion export project being developed with Eni and XRG, ADNOC's international energy investment company. The project is expected to leverage Vaca Muerta natural gas resources.

The initial phase is designed to produce 12 million tonnes/year (tpy) of LNG through two floating liquefaction units (FLNG) operating offshore Punta Colorada in the San Matías Gulf. the The development is also expected to include wet gas production in Neuquén, gas processing and liquids fractionation plants, dedicated pipelines, and coastal infrastructure.

As part of the development, YPF plans to build a 70-million cu m/day (MMcmd) (2.47-bcfd) Integrated Gas Treatment Plant (IGTP) in the Meseta Buena Esperanza block, about 22 km from the access to Plaza Huincul in Neuquén province. The plant is expected to require a $2.1-billion investment and begin operating in 2030.

IGTP will receive production from three dedicated blocks: Las Tacanas, Meseta Buena Esperanza, and Aguada Villanueva. Upstream development calls for about 1,416 wet gas wells across roughly 330 well pads, connected to the plant through about 300 km of gathering trunklines. Development will proceed in phases aligned with the startup of the two FLNG units.

Initial project documents call for two processing trains with capacity of 25 MMcmd each, for a total of 50 MMcmd (1.77 bcfd). YPF said processing capacity ultimately will increase to about 70 MMcmd, although it has not yet detailed the expansion configuration required to reach that volume.

The IGTP will comprise two operating blocks. The first will include gas reception and primary separation, condensate treatment and storage, and produced-water handling and injection. The second will house gas treatment units, utilities, and operating buildings.

Treated and compressed gas will be transported through a dedicated 48-in. OD pipeline extending about 520 km to the FLNG units off the Río Negro coast. A parallel 24-in. pipeline will carry unstabilized condensate to a fractionation and export plant in Río Negro. The pipelines will follow a dedicated corridor, with part of the route in Río Negro shared with the Vaca Muerta Oil Sur crude pipeline project.

The IGTP will occupy 54.9 hectares within a 174.9-hectare industrial development on a 525-hectare site. The site will also include four flare systems occupying 15.4 hectares and 120 hectares dedicated to temporary construction infrastructure.

Power will be supplied by four 23.79-Mw turbine generators with a combined installed capacity of 95.16 Mw. The units will operate primarily on natural gas and will be capable of running on diesel.

Water will be supplied from the Neuquén River through a 20-in. OD, 15.8-km aqueduct. Estimated demand is 5,064 cu m/day, while the system will be capable of transporting up to 29,000 cu m/day. A diversion installation will distribute water between the IGTP and hydraulic fracturing operations.

YPF selected a SACDE-Tecnimont consortium to advance detailed engineering and execution planning. Construction is scheduled for 2027-30 and remains subject to a final investment decision on the full project, which is expected by yearend. Both FLNG units are expected to be operating by 2031.

About the Author

Camilo Ciruzzi

South America Correspondent

Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.

[email protected]

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