Official press releases from Shell or Petronas

YPF and Shell Sign $140 Billion Deal for 20-Year LNG Export from Vaca Muerta, Starting 2027-2028

Dec 21, 2024, 07:38 PM

YPF, Argentina's state-owned oil company, and Shell have signed a memorandum of understanding to develop and export liquefied natural gas (LNG) from Argentina, utilizing gas from the Vaca Muerta shale formation. The agreement, valued at $140 billion, is set to last for 20 years and aims to export approximately 10 million tons of LNG annually, starting between 2027 and 2028. This project is expected to generate around $7 billion annually. The development will involve the use of two gas liquefaction ships stationed in the Golfo San Matías in Río Negro province. Shell will provide technical expertise and act as the offtaker, potentially replacing Petronas in the project. The initiative is part of a broader effort to enhance Argentina's energy export capabilities, supported by the government's Regime of Incentive for Large Investments (RIGI).