By : Inspenet, December 6, 2022
The construction project of a Liquefied Natural Gas (LNG) plant that YPF and Petronas plan to carry out will have as its starting point the enactment of a future law to promote the activity, which will allow both oil companies to add the participation of third parties companies to accelerate the investments planned to develop the initiative, initially estimated at USD 10,000 million.
On September 1, YPF and the Malaysian oil company Petronas signed a Joint Study and Development Agreement for an integrated LNG project in Argentina that will cover the production of unconventional gas, the development of an integrated LNG project in Argentina that will cover the unconventional gas production, the development of gas pipelines and maritime port and liquefaction infrastructure that could be located in the Bahía Blanca area, which will require a joint initial investment of USD 10,000 million.
The understanding included a confidentiality commitment that will remain in force until the sanction in Congress of the future framework law for the productive activity and export of LNG, which once achieved will allow not only to start the development of the project, but also to open it to other oil companies interested in participating in its financing.
Due to the magnitude of the project, sources from the national company explained that until the construction of the five planned modular liquefaction plants begins to be completed, it will be possible to advance in the laying of a gas pipeline from the Vaca Muerta formation to the south of Buenos Aires. , which would require at least a year of works.
Petronas is one of the four largest LNG supplier companies in the world, and has been working with YPF for 8 years in the development of Vaca Muerta.
Now, together they embarked on the project that will have an investment of about 10,000 million dollars, in the first stage, which will allow the production of up to 5 million tons/year of LNG.
In a period of 10 years, when the work is finished, it will be possible to produce and export more than 25 million tons/year of LNG, for an equivalent of US$ 20,000 million per year.
At present the country imports, at the peak of winter consumption, around 35 LNG ships per year.
On the contrary, when the LNG plant reaches its maximum capacity, Argentina will export more than 460 ships per year, making LNG one of the main foreign exchange generators for the country.
Photo: ShutterStock
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