YPF SA has let a contract to Axens Group to license proprietary technology and provide associated equipment for a new 5,000-cu m/day diesel hydrotreating unit to be installed at one of the Argentine operator’s in-country industrial complexes.

As part of the contract announced in September, Axens will deliver the new diesel hydrotreating unit—which will be configured with Prime-D technology—in prefabricated modules, an approach the technology provider said will reduce project execution time by 6 months compared with conventional site construction.

The modular design will integrate pressure vessels, structural components, piping, and instrumentation before shipment to the refinery. The approach is intended to limit on-site construction and interference with ongoing refinery operations, Axens said.

While Axens confirmed it will execute the project in a way that allows YPF to maintain ongoing operations of the refinery, neither the service provider nor YPF identified which industrial complex will receive the new unit or disclose its capital cost, schedule, or anticipated startup date.

Broader fuel-improvement program

The new unit comes as part of YPF’s broader program to bring its refining system into compliance with Argentina’s tighter diesel specifications. YPF operates three refineries with combined capacity of 338,000 b/d: La Plata, Luján de Cuyo, and Plaza Huincul.

In the operator’s second-quarter 2026 earnings report and accompanying presentation, YPF confirmed completing installation and commissioning in July of its previously announced new hydrotreating unit at the 113,900-b/d Luján de Cuyo refining complex in Mendoza Province, Argentina.

In its 2025 annual report published earlier in 2026, YPF said the Luján de Cuyo project also was to include a new hydrogen-generation unit, as well as a revamp of a separate hydrotreating unit at the site. The report identified an estimated $637 million investment for the refinery’s wider fuel-quality program.

The annual report also confirmed advanced engineering design for new diesel hydrotreating capacity at La Plata and Plaza Huincul was underway for units equipped to support production of diesel containing 10 ppm sulfur.

In its second-quarter 2026 earnings report, YPF confirmed taking final investment decisions in May 2026 for the proposed diesel hydrotreating units at La Plata and Plaza Huincul, following completion of extended basic engineering.

Once the trio of diesel-improvement projects are completed, YPF said it expects its refining system to comply fully with Argentina’s stricter diesel requirements.

In its second-quarter 2026 earnings presentation, YPF said refinery capital spending was directed partly toward the new fuel-specifications program and revamps of topping units at Luján de Cuyo. The topping work is intended to allow the refinery to process 100% shale oil.